The primary advantage of the High-Low method over other cost estimation methods is that:
A) It utilizes only two data points rather all data points within a relevant range
B) It relies on judgment to determine the cost estimation model
C) It is a more straightforward approach to determining the variable and fixed elements of mixed costs
D) It can only be applied within the relevant range of observations of the independent variable

Question

Quizplus · Accepted Answer

The High-Low method is favored for its simplicity in separating the fixed and variable components of mixed costs, making it a straightforward approach compared to other cost estimation methods that might require more complex calculations or the use of all data points.

The Primary Advantage of the High-Low Method Over Other Cost