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hello and welcome to another TLC tutoring accounting lesson um if you havent subscribed already please be sure to subscribe as we do try to release new tutoring videos weekly today were going to be going over the high-low method and this is a way of estimating costs based on some type of activity level Im in our case were going to be doing it for XYZ manufacturing company based on production volume so essentially volume in units produced now typically when youre doing one of these high-low method problems youre going to be provided with a series of activity levels over a certain period could be quarterly could be monthly could be annually and also the related costs now the main thing to keep in mind is when theyre saying high-low they are referring to the designated activity so in our case the designated activity is production volume so dont get confused and accidentally focus on the high-low of the costs so our first step as were doing this is to begin with the basic high-lo