Which of the Following Is the Most Valid Criticism of the High-Low

question 70

Multiple Choice

Which of the following is the most valid criticism of the high-low method?

• A) It never produces accurate results
• B) It is mathematically too complex for most managers to comprehend
• C) It is a specialized case of the two-point method
• D) Data points might be outside the normal range of activity

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Definitions:

Sales

The cumulative revenue generated through the sales of products or services during a designated timeframe.

Costs

The amount of money required to produce or acquire goods or services, including manufacturing, purchasing, and marketing expenses.

Taxes

Compulsory financial charges or levies imposed on individuals or entities by a governmental organization in order to fund public expenditures.

Accounts Payable

Obligations of a company to pay off short-term debts to its suppliers or creditors.