High-Low Method

This video demonstrates how the high-low method can be applied to Danny Office Supplies to estimate shipping costs next month. Account analysis is a cost analysis method that requires a review of accounts by experienced employees to determine whether the costs in each account are fixed or variable. This approach is perhaps the most common starting point for estimating fixed and variable costs. The high-low method starts with the highest and lowest activity levels and uses four steps to estimate fixed and variable costs.

Source: Tony Bell
Creative Commons License This work is licensed under a Creative Commons Attribution 3.0 License.

Last modified: Thursday, January 4, 2024, 11:48 AM