The high-low method is used in cost accounting to estimate fixed and variable costs based on a business's highest and lowest ...

3 Steps for Using the High-Low Method. To calculate costs using the high-low method, here are the steps to follow: 1. Determine the Variable Cost Component: The formula for variable cost per unit is: ...

The high-low method is used in cost accounting to estimate fixed and variable costs based on a business's highest and lowest levels of activity. By focusing on these extremes, the high-low method ...