- High-Low Method
- In cost accounting, 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. If the variable cost is a fixed charge per unit and fixed costs remain the same, it is possible to determine the fixed and variable costs by solving the system of equations.
The high-low method is not preferred because it can yield an incorrect understanding of the data if there are changes in variable or fixed cost rates over time, or if a tiered pricing system is employed. In most real-world cases it should be possible to obtain more information so the variable and fixed costs can be determined directly. Thus, the high-low method should only be used when it is not possible to obtain actual billing data.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
high–low method — A method used to predict cost behaviour in which the observations of the cost levels for various activity levels are plotted on a graph; a straight line is drawn through the plots recording costs at the highest and lowest activity levels. This… … Accounting dictionary
Минимаксный метод (HIGH-LOW METHOD) — Метод разделения суммарных затрат на переменные и постоянные, при котором отношение разности между двумя крайними величинами суммарных затрат к разности в уровнях деловой активности представляет собой удельные переменные затраты … Словарь терминов по управленческому учету
High-low split — In traditional poker games, the player with the best traditional hand wins the whole pot. Lowball variations award the pot to the lowest hand, by any of several methods (see Low hand (poker)). High low split games are those in which the pot is… … Wikipedia
High-performance liquid chromatography — An HPLC. From left to right: A pumping device generating a gradient of two different solvents, a steel enforced column and an apparatus for measuring the absorbance. Acronym HPLC Classification Chromatography … Wikipedia
High-density lipoprotein — High density lipoproteins (HDL) is one of the 5 major groups of lipoproteins (chylomicrons, VLDL, IDL, LDL, HDL) which enable lipids like cholesterol and triglycerides to be transported within the water based blood stream. In healthy individuals … Wikipedia
Low-carbohydrate diet — Low carbohydrate diets or low carb diets are dietary programs that restrict carbohydrate consumption usually for weight control or for the treatment of obesity. Foods high in digestible carbohydrates (e.g. bread, pasta) are limited or replaced… … Wikipedia
Low-density lipoprotein — (LDL) is a type of lipoprotein that transports cholesterol and triglycerides from the liver to peripheral tissues. LDL is one of the five major groups of lipoproteins; these groups include chylomicrons, very low density lipoprotein (VLDL),… … Wikipedia
High-fructose corn syrup — (HFCS) is any of a group of corn syrups that has undergone enzymatic processing to increase its fructose content, and is then mixed with pure corn syrup (100% glucose), becoming a high fructose corn syrup; the types are: HFCS 90 (mostly for… … Wikipedia
Method Man — Method Man … Википедия
High explosive anti-tank warhead — High explosive anti tank (HEAT) rounds are made of an explosive shaped charge that uses the Neumann effect (a development of the Munroe effect) to create a very high velocity jet of metal in a state of superplasticity that can punch through solid … Wikipedia