A Disadvantage of the High-Low Method of Cost Analysis Is

question 20

Multiple Choice

A disadvantage of the high-low method of cost analysis is that it:

• A) typically results in a totally inaccurate cost formula.
• B) is too time consuming to apply.
• C) uses only two data points, which may not be representative of normal conditions.
• D) relies totally on the judgment of the person performing the cost analysis.