The most serious shortcoming of the high-low method of estimating a mixed cost function is that it:

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The high-low method only uses two data points, which is a very small portion of the available data. This can lead to inaccurate estimates of the fixed and variable components of the mixed cost function. It also assumes that changes in cost are due solely to changes in activity level, which may not always be the case. Therefore, the high-low method is not the most reliable method for estimating mixed costs.

The Most Serious Shortcoming of the High-Low Method of Estimating