Tony Bell's "High-Low Method"

In this video, Tony Bell demonstrates how the high-low method is applied to Danny Office Supplies to estimate the next month’s shipping costs. The account analysis is a method of cost analysis 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.

Last modified: Friday, December 16, 2016, 12:59 PM