When using the high-low method, what step is performed first?
A) Find the vertical intercept.
B) Write the cost equation.
C) Find the slope.
D) Predict total cost.

Question

Quizplus · Accepted Answer

The first step in using the high-low method is to find the slope, which represents the variable cost per unit of activity. This is done by dividing the change in cost by the change in activity level between the highest and lowest points.

When Using the High-Low Method, What Step Is Performed First