The high-low method may give unsatisfactory results if
A)the data points all fall on a line.
B)volume of activity is heavy.
C)volume of activity is light.
D)the points are unrepresentative.

Question

Quizplus · Accepted Answer

The high-low method may give unsatisfactory results if the points used in the analysis are unrepresentative of the overall data set. This method relies on the highest and lowest points to estimate variable and fixed costs, so if these points are outliers or not indicative of the general trend, the results can be misleading.

The High-Low Method May Give Unsatisfactory Results If