The high-low method is used in cost accounting to estimate fixed and variable costs based on a business's highest and lowest levels of activity. By focusing on these extremes, the high-low method ...

Managerial accounting, a tool used for business decision-making, allows for different methods of calculating net income. The general formula is that sales minus costs equals net income, but there ...

In managerial accounting, two types of margins are generally calculated. Gross margin, revenue less cost of goods sold, is used when preparing a traditional income statement. Contribution margin ...

Breakeven units = fixed costs/ (price – variable cost per unit) This makes sense. Price minus variable cost per unit is the amount of money you have to cover fixed costs each time you sell a unit.