A Disadvantage of the High-Low Method of Cost Analysis Is

question 80

Multiple Choice

A disadvantage of the high-low method of cost analysis is that it

• A)typically results in totally inaccurate cost formula.
• B)is too time consuming to apply.
• C)uses only two data points,which may not be representative of normal conditions.
• D)relies totally on the judgment of the person performing the cost analysis.

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Definitions:

Accreditation Inspection

Accreditation Inspection involves a thorough review by a recognized authority to ensure that a healthcare facility meets established standards of quality and safety.

Situational

Relating to a specific set of circumstances or context, often used to describe reactions or adaptations to particular events or environments.

Sociocultural

Pertaining to the combined influence of social and cultural factors on individual or community behavior and norms.

Conventional

Based on or in accordance with what is generally done or believed.