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.

---

Definitions:

Person

An individual human being.

Avoid Payment

The act of intentionally preventing or escaping the obligation to pay for a service or fee.

Cycle Billing

A billing process where customers are assigned to groups, and invoices are sent out to each group at different times throughout the month.

Large Medical Practices

Medical organizations or groups with a significant number of healthcare professionals providing a wide range of medical services.