The high-low method is used to compute the variable cost per unit and total fixed costs using just the highest and lowest volume levels.

 The high-low method is used to compute the variable cost per unit and total fixed costs using just the highest and lowest volume levels.
Group starts True or False 

Answer

True

A company has sales of $15,000, variable costs of $12,000, and income of $1,000. Therefore, the company has fixed costs of $2,000.
Group starts True or False 

Answer

True

Explanation

15000-12000-2000 = 1000

Total fixed costs change in proportion to changes in volume of activity.
Group starts True or False 

Answer

False

Total variable costs change in proportion to changes in volume of activity.
Group starts True or False
 

Answer
True