Variable costs increase as sales increase. Accountants segregate fixed and variable expenses with the high-low method. Several advantages and disadvantages are inherent in this method.

Accuracy One of the greatest benefits of the least-squares regression method is relative accuracy compared to the scattergraph and high-low methods.

By focusing on these extremes, the high-low method helps determine the variable cost per unit and the total fixed cost. This provides insight into how expenses fluctuate with production.