The high-low method differs from the scattergraph in that the high-low method
A)Is simple to prepare and interpret whereas the scattergraph requires the use of statistical techniques.
B)Is less costly than the scattergraph method.
C)Uses a statistical technique to estimate the cost components.
D)Requires only two data points - the lowest point of activity and the highest point of activity.

Question

Quizplus · Accepted Answer

The high-low method only requires two data points, the lowest point and highest point of activity, to estimate cost components. The scattergraph method, on the other hand, requires the use of statistical techniques and may be more complex and costly to prepare and interpret. The high-low method therefore differs from the scattergraph method in terms of its simplicity and requirement for fewer data points.

The High-Low Method Differs from the Scattergraph in That the High-Low