A disadvantage of the high-low method to estimate a cost function is ________.
A) historical data may hide past inefficiencies
B) historical data may be obsolete
C) historical data may not reflect changes made in the organization
D) all of the above

Question

Quizplus · Accepted Answer

The high-low method uses historical data to estimate a cost function, which may hide past inefficiencies, be obsolete or not reflect changes made in the organization. Therefore, all of the above options are a disadvantage of the high-low method.

A Disadvantage of the High-Low Method to Estimate a Cost