An attempt to separate fixed costs and variable costs given an amount of data which is limited is called as the High-Low method. It includes taking the highest and lowest level of activity and comparing the total costs. This online High low method accounting calculator helps you to calculate the variable cost, fixed cost and cost volume based on high cost, low cost, high units and low units value.
Calculate the High Low method accounting for high cost of Rs. 15000, low cost of Rs. 10000, high units of 400 and low units of 200.
Variable Cot per unit time = ( 15000 – 10000 ) / ( 400 – 200 )
= 25 .
Total Fixed Cost = 15000 - (25 x 400) = 10000 - (25 x 200)
= 5000 .
Cost Volume = 5000 + (50 * x)
=5000 + 25x .