When using the high-low method, if the high or low levels of cost do not match the high or low levels of activity:

  • choose the periods with the highest and lowest levels of activity and their associated costs.
  • skip that period and move to the next highest or lowest level where costs and activity match.
  • choose the periods with the highest and lowest level of cost and their associated activities.

Answer: choose the periods with the highest and lowest level of activity and their associated costs.

 

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