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high low method

This topic has 2 replies, 2 voices, and was last updated 13 years ago by sravani.

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June 26, 2012 at 12:17 pm #53650
sravani
Member
- Topics: 20
- Replies: 52
Hi all,
stuck with a problem from bpp.
sales units,total costs and cost inflation index are given for 4 years.but why should we divide tc by cost inflation index b4 applying high low method?
TIA
June 27, 2012 at 9:36 pm #101661
Anonymous
Inactive
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can you please give full question, so that I can understand?
June 28, 2012 at 8:19 am #101662
sravani
Member
- Topics: 20
- Replies: 52
year1 year2 year3 year4
sales(units) 85,000 93,400 95,800 94,300
total cost($) 337,500 365,670 379,080 382,395
cost inflation index 100 102 104 106
establish a linear equation for total costs per annum(at year 1 prices)using high low method.
its from bpp..thanku.
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