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 of activity and the highest point of activity - to estimate the cost components. This makes it a simple and cost-effective method, but it does not involve statistical techniques like the scattergraph method. Therefore, option D is the correct choice.

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