The Major Disadvantage of the High-Low Method Is That

question 53

Multiple Choice

The major disadvantage of the high-low method is that:

• A) It uses the two most extreme data points in determining a cost function
• B) It is difficult to calculate
• C) It is difficult to understand
• D) It involves more judgmental factors than do other methods

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Definitions:

Controls

Mechanisms or regulations put in place to guide actions or processes towards desired outcomes in an organization.

Flexibility and Creativity

Flexibility and creativity are qualities that allow individuals or organizations to adapt to change and generate innovative solutions to problems.

Hierarchical Division

The breaking down of an organizational structure into levels of hierarchy, where tasks and responsibilities are clearly delineated by rank.

Formal Authority

Formal authority is the official power granted to an individual or entity within an organization to make decisions, direct others, and enforce obedience based on their position or role.