The high-low estimation method of determining costs works well, even if the low production day was one that was affected by non-typical events.

Name: The high-low estimation method of determining costs works well, even if the low production day was one that was affected by non-typical events.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The high-low estimation method assumes a linear relationship between cost and activity levels, and using data from a non-typical day can distort the analysis, leading to inaccurate cost estimations.

The High-Low Estimation Method of Determining Costs Works Well, Even