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algol13
2 years ago
12

The high-low method calculates the total fixed cost as the: Group of answer choices

Business
1 answer:
MaRussiya [10]2 years ago
4 0

Answer:

c. difference between total variable costs and total costs at a particular activity level

Explanation:

The high low method consists of calculating costs on the basis of highest & lowest activity & comparing their corresponding total costs.

Variable cost per unit is found by : change in cost divided by the change in activity level for two points

Variable Cost per unit = <u>Highest activity cost - Lowest activity cost </u>

                                      Highest activity units - lowest activity units

Fixed Cost is thereafter calculated by subtracting Total Variable Costs from Total Cost

Fixed Cost = Highest Activity Total Cost - [ (Variable cost per unit) x (highest activity units)

Fixed Cost = Lowest Activity Cost - [ (Variable cost per unit) x (lowest activity units)]

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<u>Baldwin Corporation</u>

<u>Balance Sheets</u>

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