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.
The high-low method is a simple technique for computing the variable cost rate and the total amount of fixed costs that are part of mixed costs. Mixed costs are costs that are partially variable and partially fixed. To illustrate the high-low method, let's assume that a company had.
Mixed Cost and The High-Low Method. In the previous post about mixed cost, we stated that a mixed cost is just the sum of the variable and fixed components.