The high and low points used in the high-low method tend to be unusual and therefore the cost formula for the mixed cost may not accurately represent all of the data.

Question

Quizplus · Accepted Answer

The high and low points used in the high-low method may not be representative of all of the data points, and using them to calculate the cost formula for the mixed cost may lead to inaccurate results. Therefore, the cost formula may not accurately represent all of the data.

The High and Low Points Used in the High-Low Method