Accounting · Cost Accounting
When applying the high-low method in Excel to segregate fixed and variable costs, which of the following formulas correctly calculates the variable cost per unit if row 2 contains the costs and row 3 contains the respective volumes for the high (column E) and low (column B) activity levels?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1= D2-B2/D3-B3
- 2= (E2-B2)/(E3-B3)✓
- 3= (D2-B2)/(D3-B3)
- 4= E2-B2/E3-B3
Correct answer
= (E2-B2)/(E3-B3)
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