2 edition of High finance on a low budget found in the catalog.
|Statement||Dearborn Financial Pub.|
|Publishers||Dearborn Financial Pub.|
|The Physical Object|
|Pagination||xvi, 52 p. :|
|Number of Pages||74|
nodata File Size: 3MB.
Creating Evaluation Instruments to Predict Behavior Transfer A New Theory and Measures in Training Evaluation
Then use these four pieces of data to calculate the slope of the line that connects the two points. Finally, you compute the intercept using the slope and one of the points. High Low Method assumes a linear relationship between cost and activity which is an over simplified analysis of cost behavior. Using the high-low requires having a set of data relating to activities.
The essentially computes how much of the variance in the dependent is due to variations in the independent. It is a rather simple technique and it is less accurate than more sophisticated estimation techniques, such as regression. Calculate the budgeted payroll costs for the next quarter. High-low method does not account for the effect of inflation on a portion of financial data which could result in overestimation of the variable cost element of a mixed cost.
You take the highest and the highest cost-driver activity level and the lowest c and the lowest cost-driver activity level from the data set. can also be prepared using the traditional method or the.
The limitation can be overcome by adjusting the financial data for the effect of inflation before applying the high low method as explained in the example below.
This gives you the high-low equation for that particular cost-incurring activity.