Method which considers lowest and highest values of cost driver and cost within relevant range is called
A. low high method
B. constant equation
C. variable equation
D. high low method
Answer: Option D
Solution(By Examveda Team)
Method which considers lowest and highest values of cost driver and cost within relevant range is called high low method. In cost accounting, the high-low method is a way of attempting to separate out fixed and variable costs given a limited amount of data. The high-low method involves taking the highest level of activity and the lowest level of activity and comparing the total costs at each level.Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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