For analysis purposes the high-low method usually produces a(n)
A) reasonable estimate.
B) precise estimate.
C) overstated estimate.
D) understated estimate.

Question

Quizplus · Accepted Answer

The high-low method uses only the highest and lowest levels of activity to estimate costs, which may not capture all the complexities and nuances of the relationship between the cost and the activity level. Therefore, the estimate produced by the high-low method is typically reasonable, but not necessarily precise, overstated, or understated.

For Analysis Purposes the High-Low Method Usually Produces A(n)