The High-Low Method Provides a Reasonable Estimate of the Fixed

question 26

Multiple Choice

The high-low method provides a reasonable estimate of the fixed and variable costs as long as:

• A)it uses eight or more points (instead of simply two).
• B)at least one of the two points falls within the relevant range.
• C)the high and low points for both activity and total fixed costs are the same.
• D)the high and low points reflect the general trend of the data.

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