Which of the following is not a step in estimating total cost using the high-low method?
A)Identify the highest and lowest levels of activity.
B)Visually "fit" a line to the plotted points.
C)Compute the variable cost per unit.
D)Calculate the fixed cost using either the high point or the low point.

Question

Quizplus · Accepted Answer

"Visually 'fit' a line to the plotted points" is not a step in estimating total cost using the high-low method. The other three steps- identifying the highest and lowest levels of activity, computing the variable cost per unit, and calculating the fixed cost using either the high point or the low point- are all part of the high-low method.

Which of the Following Is Not a Step in Estimating