Question

When using the high-low method, fixed costs are calculated after variable costs are determined.

A)True
B)False

Answer 1

False. When using the high-low method, fixed costs are calculated before variable costs.

Step-by-step explanation:

False

When using the high-low method, fixed costs are calculated before variable costs. The high-low method is a technique used to estimate the fixed and variable components of a mixed cost. It involves selecting the highest and lowest levels of production and their corresponding costs, and using this information to calculate the fixed and variable costs.