One disadvantage of the high-low method is the highest and lowest points may not be representative of normal operating activities.

Name: One disadvantage of the high-low method is the highest and lowest points may not be representative of normal operating activities.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The high-low method uses only the highest and lowest data points to estimate costs, which may not accurately reflect typical operations if those points are outliers or anomalies.

One Disadvantage of the High-Low Method Is the Highest and Lowest