Cost Behavior Analysis With High Low Method

Abstract

This study aims to separate fixed costs and variable costs in order to assist management in obtaining more accurate production cost estimates and to support effective decision-making. This cost classification is important because errors in grouping costs may result in inaccurate information and negatively affect production management effectiveness. The research method used is associative, employing the high-low method approach. Data were collected through observation and direct interviews with employees in the production and administrative departments at Best Print Printing Company. Quantitative data obtained from primary sources were then analyzed to determine production cost behavior. The results of this study indicate that an understanding of cost characteristics and the separation of costs into fixed and variable components play a crucial role in producing accurate production cost estimates and providing useful information for managerial decision-making.