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The high-low method differs from the scattergraph in that the high-low method

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The high-low method differs from the scattergraph in that the high-low method

The high-low method differs from the scattergraph in that the high-low method

▸ requires only two data points — the lowest point of activity and the highest point of activity.

▸ uses a statistical technique to estimate the cost components.

▸ is simple to prepare and interpret whereas the scattergraph requires the use of statistical methods.

▸ is less costly than the scattergraph method.

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Managerial Accounting

Edition: 4^th

Author: Davis

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