High-Low Method Accounting | Definition, Formula & Examples
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High-Low Method Accounting | Definition, Formula & Examples
Understand the high-low method in accounting. Learn the formulas for the high-low method. Learn how to compute variable cost per unit, fixed cost, and cost model.
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Required informationProblem 21-1A (Algo) Measuring costs using high-low method LO P1[The following information applies to the questions displayed below.]Alden Company's monthly data for the past year follow. Management wants to use these data to predict future variableand fixed costs.Month Units Sold Total Cost1 317,000 154,5002 162,000 98,2503 262,000 202,6004 202,000 97,0005 287,000 198,5006 187,000 109,0007 363,000 299,9848 267,000 148,7509 76,600 68,00010 147,000 127,62511 91,000 91,00012 97
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