A disadvantage of the high-low method is that the high point and low point may not be representative of the total data set available.

Question

Quizplus · Accepted Answer

The high-low method uses only two data points to estimate the fixed and variable components of a mixed cost, which means that if the high and low points are not representative of the total data set, the resulting cost estimation may be inaccurate.

A Disadvantage of the High-Low Method Is That the High