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First, determine the variable cost component:. Next, use the following formula to determine the fixed cost component:.
Use the results of the first two formulas to calculate the high-low cost result using the following formula:. The costs associated with a product, product line, equipment, store, geographic sales region, or subsidiary, consist of both variable costs and fixed costs.
To determine both cost components of the total cost, an analyst or accountant can use a technique known as the high-low method.
The high-low method is used to calculate the variable and fixed cost of a product or entity with mixed costs. It takes two factors into consideration.
It considers the total dollars of the mixed costs at the highest volume of activity and the total dollars of the mixed costs at the lowest volume of activity.
The total amount of fixed costs is assumed to be the same at both points of activity. The change in the total costs is thus the variable cost rate times the change in the number of units of activity.
For example, the table below depicts the activity for a cake bakery for each of the 12 months of a given year. Below is an example of the high-low method of cost accounting:.
The cost amounts adjacent to these activity levels will be used in the high-low method, even though these cost amounts are not necessarily the highest and lowest costs for the year.
We calculate the fixed and variable costs using the following steps:. To calculate the total fixed costs, plug either the high or low cost and the variable cost into the total cost formula:.
Using all of the information above, the total cost equation is as follows:. This can be used to calculate the total cost of various units for the bakery.
The high-low method is a simple analysis that takes less calculation work. It only requires the high and low points of the data and can be worked through with a simple calculator.
It also gives analysts a way to estimate future unit costs. However, the formula does not take inflation into consideration and provides a very rough estimation because it only considers the extreme high and low values, and excludes the influence of any outliers.
Regression analysis helps forecast costs as well, by comparing the influence of one predictive variable upon another value or criteria.
It also considers outlying values that help refine the results. However, regression analysis is only as good as the set of data points used, and the results suffer when the data set is incomplete.
It's also possible to draw incorrect conclusions by assuming that just because two sets of data correlate with each other, one must cause changes in the other.
Regression analysis is also best performed using a spreadsheet program or statistics program. The high-low method is relatively unreliable because it only takes two extreme activity levels into consideration.
The high or low points used for the calculation may not be representative of the costs normally incurred at those volume levels due to outlier costs that are higher or lower than would normally be incurred.
In this case, the high-low method will produce inaccurate results. The high-low method is generally not preferred as it can yield an incorrect understanding of the data if there are changes in variable or fixed cost rates over time or if a tiered pricing system is employed.
In most real-world cases, it should be possible to obtain more information so the variable and fixed costs can be determined directly. Kohaku, former leader of the powerful Mugen, is devastated over the death of his close friend, Tatsuya.
He's approached by Lee from Chanson, a mafia from South Korea. Chanson is working with the local yakuza group Kuryu Group to gain control of the area together, and Lee induces Kohaku to join the plan.
Most notably, Mighty Warriors sets the Nameless Road ablaze, killing some of the residents there. Hiroyuki Takaya portrays Ohta, and Yushin Okami portrays Konishi, both former members of Mugen and now boxers working overseas.
As members of the White Rascals , the four of them always work together. Zen appears as P, a Rude Boys member and their best Traceur. Hakuryu appears as Chanson 's boss Chang.
Kouhei Takeda appears as Hirai, a member of Doubt. The Ijuin brothers have a barbershop, and their sister Nika does part-time job at diner "Itokan".
Kaoru Hirata portrays Noburu's former girlfriend Miho. With more than 50 people appeared on its stage greeting event, it is a "massive" premiere that has never been seen in Japan.
The massive group of participants included director Sigeaki Kubo, producer Hiroyuki Ueno, project producer Exile Hiro , screenwriter Norihisa Hiranuma, and 46 actors who appeared in the film.
Takahiro and Hiroomi Tosaka attended the event and greeted their Chinese fans with Chinese. Japanese drama critic Reiichi Narima described the film as chaos with too many characters on screens, and audiences would "find it hard to focus on any of them" without an obvious main character.
Meanwhile, he stated that "the fact that it has no deciding main character may just be the essence of the Exile Tribe and is in tune with the times".
He also pointed out that "the story of Kohaku might resonate with male audiences". He wrote, "After watching the movie, if you hear the theme songs of any gang, the scenes of films will immediately come to your mind.