The high$-$low method $$

only uses two data points

provides a reasonable estimate as long as the data points are within the relevant range

calculates the line based on the most extreme activity data points

uses the highest and lowest level of total cost

A variable costing income statement

calculates contribution margin, while the absorption costing income statement calculates gross margin

focuses on fixed and variable expenses, while an absorption costing income statement focuses on period and product costs

is constructed exactly like an absorption costing income statement

does not include fixed manufacturing overhead, which is included on an absorption costing income statement

A variable costing income statement

calculates contribution margin, while the absorption costing income statement calculates gross margin

focuses on fixed and variable expenses, while an absorption costing income statement focuses on period and product costs

is constructed exactly like an absorption costing income statement

does not include fixed manufacturing overhead, which is included on an absorption costing income statement