Determine how many items were produced within the same time period. Divide the total manufacturing costs by the number of items produced to arrive at the production cost per unit. Example: ...

By focusing on these extremes, the high-low method helps determine the variable cost per unit and the total fixed cost. This provides insight into how expenses fluctuate with production.

Calculation To use the high-low method of estimating costs, a business must create a list that contains sales and cost information spanning a period of time.

Start by working out the total cost of producing or buying one unit of your product. This includes direct costs such as raw ...

Therefore, this paper, using a worked example, illustrates the different steps involved to generate cost and unit costs for a small hospital. Health Policy and Planning publishes health policy and ...