Q4RQ
Question
What is the purpose of using the high-low method?
Step-by-Step Solution
Verified Answer
The purpose of using the high-low method is to split mixed cost into fixed cost and variable cost.
1Purpose of using the high-low method
The purpose of using the high-low method is to segregate variable cost and fixed cost from mixed cost.
2How high-low method is used
High-low method use highest and lowest activity levels to separate fixed and variable cost. In this method difference of cost at highest and lowest activity is divided by difference in number of activity.