The High-Low Method Requires the Identification of the Lowest and Highest

question 152

True/False

The high-low method requires the identification of the lowest and highest levels of total costs,not activity,over a period of time.

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Definitions:

ABC

A costing method that identifies activities in an organization and assigns the cost of each activity to products or services according to the actual consumption.

Overhead Costing Systems

Methodologies used to allocate indirect costs (overhead) to products or services, which may vary depending on the costing approach (e.g., traditional costing or activity-based costing).

Overhead Allocation Base

A metric used to assign indirect costs to cost objects, often based on time, labor, or machine hours.