Weaknesses of the high-low method include all of the following EXCEPT
A)only two observations are used to develop the cost function.
B)the high and low activity levels may not be representative.
C)the method does not detect if the cost behavior is nonlinear.
D)the method is relatively complex and difficult to apply.

Question

Quizplus · Accepted Answer

The statement "the method is relatively complex and difficult to apply" is not a weakness of the high-low method. In fact, the high-low method is considered one of the simplest and most straightforward methods of cost estimation. The other three statements are all weaknesses of the high-low method.

Weaknesses of the High-Low Method Include All of the Following