A disadvantage of the high-low method of cost analysis is that it
A)typically results in totally inaccurate cost formula.
B)is too time consuming to apply.
C)uses only two data points,which may not be representative of normal conditions.
D)relies totally on the judgment of the person performing the cost analysis.

Question

Quizplus · Accepted Answer

The high-low method only uses two data points, which may not be representative of normal conditions. This can lead to inaccurate cost formulas and unreliable cost estimates.

A Disadvantage of the High-Low Method of Cost Analysis Is