Weaknesses of the High-Low Method Include All of the Following

question 176

Multiple Choice

Weaknesses of the high-low method include all of the following except

• A)only two observations are used to develop the cost function.
• B)the high and low activity levels may not be representative.
• C)the method does not detect if the cost behavior is nonlinear.
• D)the mathematical calculations are relatively complex.

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Definitions:

Equity Theory

A theory of motivation that focuses on individuals' perceptions of fairness in exchange relationships, emphasizing the importance of achieving equity between an individual's input and outcomes.

Tactics

Specific actions or strategies designed to achieve a particular objective, often within the context of competition or conflict.

Autonomous Motivation

Motivation that originates internally, driving individuals to engage in activities for the inherent satisfaction or personal reward they provide.

Competence

The ability to do something successfully or efficiently, involving knowledge, skill, and aptitude.