Which formula calculates the variable rate of a mixed cost when using the high-low method?
A)
$\frac{\text {high point output - low point output }}{\text {high point cost - low point cost }}$
B)
$\frac{\text { high point cost - low point cost }}{\text { high point output - low point output }}$
C) total cost at high point - (variable rate × output at low point)
D) total cost at high point - (variable rate × output at high point)

Question

Quizplus · Accepted Answer

The high-low method calculates the variable rate by dividing the difference in costs by the difference in outputs between the high and low points.

Which Formula Calculates the Variable Rate of a Mixed Cost high point output - low point output high point cost - low point cost \frac{\text {high point output - low point output }}{\text {high point cost - low point cost }}high point cost - low point cost high point output - low point output ​

Which Formula Calculates the Variable Rate of a Mixed Cost $\frac{\text {high point output - low point output }}{\text {high point cost - low point cost }}$