The high-low method can be used to approximate a cost function.A disadvantage of this method is ________.
A)it is difficult to apply due to rigorous calculations
B)it is more subjective than account analysis
C)it is more subjective than engineering analysis
D)it makes inefficient use of information because it does not use all the available data

Question

Quizplus · Accepted Answer

The high-low method only uses two data points (the highest and lowest observations) and ignores other data points, making it an inefficient use of information.

The High-Low Method Can Be Used to Approximate a Cost