High Low Method Example

This video provides an example of how to use the High-low Method in Managerial Accounting.
The High-low Method can be used to calculate the variable cost per unit. This is found using the following formula:
(Total Cost at the Highest Activity Level - Total Cost at the Lowest Activity Level) / (Highest Activity Level - Lowest Activity Level) = Variable Cost Per Unit
Once you know the variable cost per unit, you can find the total fixed cost using the following formula:
Fixed Cost = Total Cost - Total Variable Cost
Once you know the variable cost per unit and the fixed cost, you can predict what the total cost would be at various activity levels. You would do this using the following formula:
Total Cost (predicted) = Fixed Cost + Variable Cost Per Unit * Units
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[@Sj-bp8dx]

Used this during practice test during college and got it right within time. Thanks for the quick explanation!

[@musicfriend2051]

Simple and clear explanation, great quality of teaching. Thank you so much.

[@rudysassafras]

y=mx+b
y=total cost
m=variable cost per unit (slope)
x=activity level/volume level
b=fixed cost

[@Zap-gw4di]

Thank you. Your videos helped me in college years ago, and are now helping me with BEC.

[@danielsunza7550]

This is exactly what I needed,, thank u

[@jaymaurya3517]

Yeah, same here. That's what exactly I needed too. And now I got

[@BringMeThe0cean.]

Thank you so much, the way you explained it was super easy to follow and understand.

[@sketchwaretagalogtutorials]

This is the clearest video exp for high-low method

[@harrilovett6819]

Brilliant human being. Fantastic explanation - thank you

[@levixhyuni5415]

thank you for making my online class easy

[@gemavillalobos9777]

Thank you for making this concept super clear. Please become a professor if youre not already. College proffesors suck!!!

[@jam9227]

you explained this so well, thank you.

[@serenatwanga7200]

You are the best🔥i couldn't thank you enough❤

[@sirsherafsar8322]

Great method of teaching...

[@cwengaaphiwemagadla1558]

You might have just saved my MAC semester

[@kolegaramic260]

Thanks for a great explanation!

[@denismason2473]

Amazing simplicity kudos

[@Edspira]

So nice of you

[@laurentinkusber1570]

thx bro! Realy good video

[@ahmadlokmanmukmin9744]

tq for explanation help me a lot

[@gaonemokute8896]

thank You so much, this video really helped me out

[@mestranger5089]

What we must to do if we have 2 highest lines with the same units value but different cost!? What we must to choose

[@spamkenne]

Thank you!

[@TheCalebMerritt]

great video, youre clutch

[@soumyavarma6924]

Thank you SO SO MUCH

[@Punjabilifeinspain]

Best video

[@ibracadabraFC07]

thank you for the clear explanation

[@Edspira]

Glad it was helpful!

[@quynhanh7107]

You try to give the video more brightness it will be great if you do

[@pistolpete7280]

Excellent video. Thank you

[@haretztj4682]

very nice

[@jonathanschembri1729]

Thanks for the explanation

[@mr.m.t.j.m6003]

I know this make sense thank you sir

[@kokotahuh]

This is awesome thanks !!!!

[@everykindavdo]

Thanks man! ❤️

[@Ge872]

Perfect, thank you!

[@johnolsen6998]

Very helpful sir!

[@mazharzulfiqar2290]

Fruitful and informative video

[@nicolem8599]

So helpful!!!!

[@jasminemcdonald4495]

Amazing

[@hughdamian1188]

what happens if the lowest activity level and highest activity level are in different relevant ranges in terms of Fixed Costs

[@amazengrace]

I know this is 5 months later, but usually you would go with the fixed cost that is more relevant to your problem. Most of the time a problem will not have this happen, but this could be the case in a real life situation. It all depends on your judgement to which one is more relevant to the organization.

[@Bloke_Stevenson]

thanks man

[@lusineyasabekyan3205]

Can I ask a question?

[@candarus_collective]

Thank u :)

[@rayjohn926]

can somebody enlighten me how come its 286usd? 3000x54+124usd . Thanks in advance

[@dimasricardo7732]

Haloo terimakasih atas videonya, namun apakah kamu bisa menambahkan subtittel? itu akan membantu agar lebih mudah untuk memahami video

[@theclouddelro7060]

you saved my grades HAHAHAH

[@yduufuuduu7494]

You try to give the video more brightness it will be great if you do