Mode 1 — High-Low Dasar
Enter two points: activity & cost at the terendah and tertinggi level. Swapped order is fine — the point with the largest activity is automatically treated as the high point.
Mode 2 — Cost Prediction
Enter the fixed cost (a) and variable rate (b) — e.g. from Mode 1 results — then predict total cost at a given activity level. This is an estimate, not a certainty.
Mode 3 — Tabel Multi-Periode
Paste multi-period data, one row per period, in the format activity,cost. The highest & lowest activity points are picked automatically.
Mode 4 — Komparator Dua Set Data
Compare the cost structure of two datasets (e.g. two departments, two periods, or two scenarios) — each one’s variable rate & fixed cost plus
Set A
Set B
Tanya Jawab: Metode High-Low
Educational note: the explanation below is for learning cost-accounting concepts, not a guide to business decisions or professional advice.
What is the high-low method in cost accounting?
The high-low method is a technique for splitting mixed costs into fixed-cost and variable-cost components. Take two data points — the highest-activity point and the lowest-activity point — then compute the variable rate from the cost difference divided by the activity difference, and the fixed cost by substituting into either point. The result is a cost formula Y = a + bX used for estimation.
What is the high-low method formula?
Variable rate per unit: b = (highest cost − lowest cost) ÷ (highest activity − lowest activity). Fixed cost: a = highest cost − b × highest activity. Example: activity 1,000 with cost 5,000, and activity 2,000 with cost 8,000. Then b = (8,000 − 5,000) ÷ (2,000 − 1,000) = 3, and a = 8,000 − 3 × 2,000 = 2,000. The cost formula: Y = 2,000 + 3X.
When should the high-low method be used?
The high-low method fits when data is scarce, when a quick estimate is needed without statistical software, or as a first step before more careful analysis. Using only two points, it is simple and easy to re-audit by hand.
Apa keterbatasan metode high-low?
Its main limitation: only two data points are used, so all other points are ignored. If either of the two points is an outlier (e.g. a month with extraordinary costs), the result is skewed. The method also assumes the cost-activity relationship is truly linear within the analyzed range, and its results cannot be trusted outside the data range (extrapolation).
What is the difference between the high-low method and least-squares regression?
Both produce a Y = a + bX formula, but differently. The high-low method uses only two extreme points (highest and lowest activity). Least-squares regression uses all data points and picks the line minimizing the sum of squared deviations from every point, so it is generally more stable and not hostage to two points. See also the least-squares regression calculator at nrtechstudio.com/tools/least-squares-regression/ for a direct comparison.
Give a step-by-step high-low method calculation example.
Data: lowest activity 1,000 units with cost 5,000; highest activity 2,000 units with cost 8,000. Step 1 — variable rate: b = (8,000 − 5,000) ÷ (2,000 − 1,000) = 3,000 ÷ 1,000 = 3 per unit. Step 2 — substitute into the highest point: a = 8,000 − 3 × 2,000 = 8,000 − 6,000 = 2,000. Step 3 — cost formula: Y = 2,000 + 3X. Step 4 — predict: at activity 1,500 units, Y = 2,000 + 3 × 1,500 = 6,500.
Are high-low method predictions guaranteed accurate?
No. The result is an estimate from two data points assuming a linear relationship — not a certainty. Actual figures can differ due to outliers, price changes, or non-linear cost patterns. This calculator is educational, not professional accounting or financial advice.