The high-low point method results can be misleading if the activity is not reflective of the normal activity.

Name: The high-low point method results can be misleading if the activity is not reflective of the normal activity.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The high-low point method relies on using the highest and lowest levels of activity to estimate fixed and variable costs, which can be misleading if the activity during those periods is not representative of normal activity levels. Therefore, the statement is true.

The High-Low Point Method Results Can Be Misleading If the Activity