Which of the following are disadvantages of the high low method:
A) Ignores all but two data points
B) Relies on past costs
C) Highest and lowest data points are often atypical
D) All of the above

Question

Quizplus · Accepted Answer

The high-low method, a technique used to estimate fixed and variable costs, has several disadvantages: it only considers the highest and lowest points of data, ignoring the rest; it is based on historical costs, which may not accurately predict future costs; and the highest and lowest data points can be outliers, making them unrepresentative of typical costs.

Which of the Following Are Disadvantages of the High Low