Which of the following is a strength of the high-low advantage method?
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 behaviour is nonlinear.
D)The method is easy to apply.

Question

Quizplus · Accepted Answer

The strength of the high-low advantage method is that it is easy to apply. However, using only two observations may not be sufficient to accurately predict cost behavior, and the high and low activity levels may not be representative. Additionally, the method does not detect if cost behavior is nonlinear.

Which of the Following Is a Strength of the High-Low