High-Low Method Definition | Becker
Accounting Dictionary
High-Low Method
- The high-low method is a technique to determine a regression line by using the high and low values of a set of data. It is one step up from using a ruler to determine the line. The method of least squares can be used to determine a more exact line. See also regression analysis and coefficient of correlation and coefficient of determination and standard error of the estimate and t-value. Method of estimating cost behavior by using only the highest and lowest values of the cost driver within the relevant range.
Related Terms:
Regression Analysis [BAR]Coefficient of Correlation [BAR]Coefficient of Determination [BAR]Standard Error of the Estimate [BAR]T-Value [BAR]Back to Dictionary