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Estimating cost is essential in accounting and for that expert use different methods. One of them is a high-low method, and anyone can only go with this effective method only when he will have proper knowledge. Lack of knowledge may create problems, and for that, we are here to give you the exact information through our high-low method homework help services.

It will be end of your hesitation when you take our services as we know that how team explains each term in an appropriate way to make your study simple.

What is High-Low Method?

High –low method is an excellent method of cost estimation where you will get that how with the help of highest activity levels and lowest activity level mixed cost is evaluated. Undoubtedly this is a simple method to find out the cost estimation, but it is very important to know that evaluation takes place only when there are high value and low-value levels. In case of average, as more than 20 students get 60 %, it becomes difficult to get a lower value. So, it is somehow difficult where there is no extremely higher value or lower value to get a proper evaluation.

Our high-low method homework help experts also explain the terms with appropriate examples, and this is the best way to boost up your knowledge.

What are the important steps for cost estimation in high-low method?

In case of this method, you must follow these following steps as –

  • Finding out of dependent variable or which one perfectly represents the total cost. Along with that, it is also important to evaluate independent variable as X. It is also important to know the lowest as well as the highest activity value in independent variable x.
  • Determination of variable cost per unit is an essential step. So, our experts say that

Variable cost per unit = (Y2 – Y1) / (X2 – X1)

Now know each term of this formula as,

Y1 = Total cost at the low activity level

Y2 = Total cost of high activity level

X2 = this is high activity level

X1 = this is low activity level

  • Now, you can replace data point either replacing the high data value or low data value with variable cost. Total cost needs to plug the high activity level into Y variable and then high activity point to the x variable. Now, TFC is required to solve as Total Fixed cost.
  • After that, you need to apply variable cost and y-intercept with in the following formula Y = VC x + FC

All these points are explained properly and our high-low method assignment help services.  

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If you are confused with any term, then click on high-low method assignment help from myhomeworkhelp.com.

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