What is the High-Low Activity Method? (Managerial Accounting Series)
This management accounting tutorial builds off the previous lesson 'What is a Cost Function?' where we explored Y = VX + F. This management accounting tutorial explores a great method for actually calculating the 'V' and 'F' which are variable cost per unit and total fixed cost, respectively. We explain how this method uses the high and low cost driver activity from a table of maintenance costs.
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