1. Estimating the variable costs and fixed costs
I need assistance with the attached homework probem 5-11© BrainMass Inc. brainmass.com June 3, 2020, 7:10 pm ad1c9bdddf
This is a method for separating costs into fixed and variable components, based upon the difference between costs at the highest and lowest observed levels of activity
With the high-low technique, the highest and lowest levels of activity are identified for a period of time. Say the highest repair paid is $2000, and the lowest is $1500. The difference in cost between the highest and lowest level of activity represents the variable cost ($2000 - $1500 = $500) associated with the change ...
This provides the steps to calculate the Estimating the variable costs and fixed costs using High low method