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

question 82

Multiple Choice

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 methods.
• 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.

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Definitions:

Limited Information

The situation of having insufficient data or knowledge to make fully informed decisions.

Bounded Rationality

A decision strategy that relies on limited information and that reflects time constraints and political considerations.

Bounded Rationality

A theory suggesting that decision-makers are limited by the information they have, their cognitive limitations, and the finite amount of time they have to make a decision.

Time Constraints

The limitations or deadlines imposed on a task or project, influencing its completion.