The high-low method is used for estimation of ___________?
Correct answer: C. slope coefficient
- A. linear coefficient
- B. cost coefficient
- C. slope coefficient
- D. price coefficient
Explanation
The high-low method calculates variable cost per unit of activity as the change in cost divided by the change in activity. This value is the slope coefficient of the cost function.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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