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

question 85

Multiple Choice

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

• A) it cannot be used when there are a very large number of observations.
• B) it is too time consuming to apply.
• C) it uses two extreme data points, which may not be representative of normal conditions.
• D) it relies totally on the judgment of the person performing the cost analysis.

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Definitions:

Account Management Policy Grid

A strategic tool used in sales and marketing to categorize and manage customer accounts based on their potential and the business's objectives.

Level of Opportunity

The scope or chance that exists for new ventures or improvements within a market, organization, or environment, often impacting strategic decisions.

Competitive Sales Position

A company's standing or rank in the market compared to its competitors, often in terms of sales volume or market share.

Product Sales Organization

A structured setup in a company dedicated to selling products, which includes roles, responsibilities, and processes aimed at achieving sales targets.