Hi-Low method
ID:CVHLM
Video Overview
Costs can be classified as fixed, variable, or mixed. Fixed costs are costs that remain unchanged irrespective of the number of units produced or sold. Variable costs are costs that vary with the level of production or sales. For example, raw material costs and sales commission. Mixed costs are costs that have both a fixed and variable component. There are two methods for calculating the fixed and variable component of mixed costs. One such method is the high-low method which we will be discussing in this tutorial.
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