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The high-low method a. is based on the premise that all data points are necessary to define a linear cost-volume relationship. b. helps in determining

The high-low method

a.

is based on the premise that all data points are necessary to define a linear cost-volume relationship.

b.

helps in determining the fixed and variable components of a mixed cost.

c.

calculates variable costs per unit by dividing the difference in the high and low activity levels by the high and low costs.

d.

gives accurate results of cost estimation, irrespective of the relevant range.

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