Describe the steps in the high-low method.
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The steps in the high-low method are:
1. Assemble cost and volume information for a given period of time (several months, perhaps)
2. Select the high volume point and the low volume point in the data set
3. Determine the estimated variable cost per unit. Estimated variable cost = difference in total cost divided by difference in volume
4. Use the estimated variable cost per unit and either the high point or the low point to estimate the fixed cost
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