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 is based on using the highest and lowest activity levels and costs to estimate the variable and fixed costs of a mixed cost function. However, this approach only uses a small portion of the available data, which can lead to inaccurate estimates. Therefore, the most serious shortcoming of the high-low method is that it is based on a very limited amount of data, making it less reliable than other methods such as using regression analysis to estimate mixed cost functions.

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