M5-5 (Static) Defining Terms for the High-Low Method [LO 5-3] Indicate whether each of the following statements about the high-low method is true or false: a. b. The formula for the high-low method is (Highest Cost - Lowest Cost) (Highest Activity - Lowest Activity) The high-low method can be expressed as Change in Cost/Change in Activity = Fixed Cost per Unit The high-low method forces a line between the two most extreme activity data points. The high-low method relies on the fact that the slope of a line is calculated as "run over rise. When using the high-low method, the slope of the line is interpreted as the fixed-cost component of a mixed cost. C. d. e