Which of the following is the most valid criticism of the high-low method?
A) It never produces accurate results
B) It is mathematically too complex for most managers to comprehend
C) It is a specialised case of the two-point method
D) Data points might be outside the normal range of activity

Question

Quizplus · Accepted Answer

The high-low method uses the highest and lowest activity levels to estimate fixed and variable costs, but these data points might be outliers outside the normal range of activity, causing inaccurate estimates.

Which of the Following Is the Most Valid Criticism of the High-Low