A Disadvantage of the High-Low Method to Estimate a Cost

question 57

Multiple Choice

A disadvantage of the high-low method to estimate a cost function is ________.

• A) historical data may hide past inefficiencies
• B) historical data may be obsolete
• C) historical data may not reflect changes made in the organization
• D) all of the above

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Definitions:

Budget Act

Legislation that governs the budgetary process of a government, setting forth the procedures for proposing, reviewing, and implementing a budget.

Federal Deficit

The shortfall when the U.S. government's expenditures exceed its revenues in a fiscal year.

Pledge

A promise or agreement to do something, often involving a commitment to donate money or resources.

Government Expenditures

Represents the total amount of money spent by the government on various sectors including defense, education, and healthcare.