Which of the following statements is correct about the high-low method?
A)The high-low method is complicated to apply.
B)The high-low method is effective for periods in which activity is particularly high or low.
C)Generally,managers can obtain more accurate information from other methods of cost analysis that use a larger number of data points.
D)Generally,managers use the high-low method because it has no drawbacks or limitations.

Question

Quizplus · Accepted Answer

The high-low method is a simple way to estimate variable and fixed costs, but it only uses two data points, which can lead to less accurate results compared to methods that use more data points.

Which of the Following Statements Is Correct About the High-Low