The high-low method differs from the scattergraph in that the high-low method
A)is simple to prepare and interpret whereas the scattergraph requires the use of statistical methods.
B)is less costly than the scattergraph method.
C)uses a statistical technique to estimate the cost components.
D)requires only two data points - the lowest point of activity and the highest point of activity.

Question

Quizplus · Accepted Answer

The high-low method requires only two data points - the lowest point of activity and the highest point of activity, while the scattergraph method requires multiple data points, and the use of statistical methods. Therefore, the best choice is D.

The High-Low Method Differs from the Scattergraph in That the High-Low