high-low method of cost estimation

简明释义

成本估算的高低法

英英释义

例句

1.By applying the high-low method of cost estimation 高低成本估算法, we can determine the fixed and variable costs more accurately.

通过应用高低成本估算法 high-low method of cost estimation，我们可以更准确地确定固定成本和可变成本。

2.The high-low method of cost estimation 高低成本估算法 is particularly useful for businesses with fluctuating sales volumes.

对于销售量波动的企业来说，高低成本估算法 high-low method of cost estimation特别有用。

3.Using the high-low method of cost estimation 高低成本估算法, the team identified the highest and lowest production levels to estimate costs.

利用高低成本估算法 high-low method of cost estimation，团队识别出最高和最低的生产水平以估算成本。

4.The accountant explained how the high-low method of cost estimation 高低成本估算法 helps in budgeting for the next quarter.

会计师解释了高低成本估算法 high-low method of cost estimation如何帮助下个季度的预算编制。

5.The manager decided to use the high-low method of cost estimation 高低成本估算法 to analyze the variable costs for the upcoming project.

经理决定使用高低成本估算法 high-low method of cost estimation来分析即将到来的项目的可变成本。

作文

The high-low method of cost estimation is a widely used technique in the field of managerial accounting and cost management. This method helps businesses estimate costs based on historical data, specifically focusing on the highest and lowest activity levels within a certain period. By analyzing these two extremes, companies can derive a variable cost per unit and a fixed cost component, which are essential for budgeting and financial forecasting.To understand the high-low method of cost estimation, let’s consider an example. Suppose a manufacturing company produces widgets and has recorded its costs over several months. The highest level of production occurred in June, where the company produced 1,000 widgets at a total cost of $10,000. Conversely, the lowest level of production was in February, with only 500 widgets produced at a cost of $6,000. By using these two data points, the company can calculate the variable cost per unit and the fixed costs associated with production.First, the variable cost per unit can be determined by taking the difference in total costs divided by the difference in production levels. In this case, the calculation would be:Variable Cost per Unit = (Cost at High Activity - Cost at Low Activity) / (High Activity Level - Low Activity Level)Plugging in the numbers:Variable Cost per Unit = ($10,000 - $6,000) / (1,000 - 500) = $4 per widget.Next, to find the fixed costs, we can use either the high or low point of activity. Using the high point:Total Cost = Fixed Costs + (Variable Cost per Unit * Number of Units Produced)Rearranging gives us:Fixed Costs = Total Cost - (Variable Cost per Unit * Number of Units Produced)Using June’s data:Fixed Costs = $10,000 - ($4 * 1,000) = $10,000 - $4,000 = $6,000.Now that we have both the variable cost per unit and the fixed cost, the company can predict future costs at different levels of production. For instance, if the company plans to produce 800 widgets, it can use the following formula:Total Estimated Cost = Fixed Costs + (Variable Cost per Unit * Number of Units Produced)Total Estimated Cost = $6,000 + ($4 * 800) = $6,000 + $3,200 = $9,200.The high-low method of cost estimation is particularly beneficial for businesses as it provides a simple yet effective way to analyze costs without requiring complex statistical methods. However, it does have its limitations. One major drawback is that it relies heavily on just two data points, which may not accurately represent the overall cost behavior if there are fluctuations or anomalies in the data. Additionally, this method assumes a linear relationship between cost and activity level, which may not always hold true in real-world scenarios.In conclusion, the high-low method of cost estimation is a practical approach for businesses seeking to estimate costs based on activity levels. By leveraging historical data, organizations can make informed decisions regarding budgeting and financial planning. While it is essential to recognize the method's limitations, it remains a valuable tool in the arsenal of cost estimation techniques. Understanding and applying the high-low method of cost estimation can ultimately lead to more accurate financial forecasts and better resource allocation within a company.

高低法（high-low method of cost estimation）是一种在管理会计和成本管理领域广泛使用的技术。该方法帮助企业根据历史数据估算成本，特别关注某一特定时期内的最高和最低活动水平。通过分析这两个极端，企业可以推导出每单位的变动成本和固定成本成分，这对于预算编制和财务预测至关重要。为了理解高低法（high-low method of cost estimation），我们来看一个例子。假设一家制造公司生产小部件，并记录了几个月的成本。最高的生产水平发生在六月，公司在那个月生产了1000个小部件，总成本为10000美元。相反，最低的生产水平是在二月，仅生产了500个小部件，成本为6000美元。通过使用这两个数据点，公司可以计算每单位的变动成本和与生产相关的固定成本。首先，可以通过将总成本的差异除以生产水平的差异来确定每单位的变动成本。在这种情况下，计算如下：每单位变动成本 = (高活动的成本 - 低活动的成本) / (高活动水平 - 低活动水平)代入数字：每单位变动成本 = (10000美元 - 6000美元) / (1000 - 500) = 4美元每个小部件。接下来，为了找出固定成本，我们可以使用高点或低点的活动。使用高点：总成本 = 固定成本 + (每单位变动成本 * 生产数量)重新排列公式得到：固定成本 = 总成本 - (每单位变动成本 * 生产数量)使用六月的数据：固定成本 = 10000美元 - (4美元 * 1000) = 10000美元 - 4000美元 = 6000美元。现在我们有了每单位的变动成本和固定成本，公司可以预测在不同生产水平下的未来成本。例如，如果公司计划生产800个小部件，可以使用以下公式：总估计成本 = 固定成本 + (每单位变动成本 * 生产数量)总估计成本 = 6000美元 + (4美元 * 800) = 6000美元 + 3200美元 = 9200美元。高低法（high-low method of cost estimation）对企业特别有益，因为它提供了一种简单而有效的方法来分析成本，而无需复杂的统计方法。然而，它确实有其局限性。一个主要缺点是它过于依赖仅仅两个数据点，如果数据中存在波动或异常，这可能无法准确代表整体成本行为。此外，该方法假设成本与活动水平之间存在线性关系，而这在现实世界中可能并不总是成立。总之，高低法（high-low method of cost estimation）是一种实用的方法，适用于希望根据活动水平估算成本的企业。通过利用历史数据，组织可以就预算编制和财务规划做出明智的决策。虽然必须认识到该方法的局限性，但它仍然是成本估算技术工具箱中的宝贵工具。理解和应用高低法（high-low method of cost estimation）最终可以导致更准确的财务预测和更好的资源分配。