The Most Serious Shortcoming of the High-Low Method of Estimating

question 2

Multiple Choice

The most serious shortcoming of the high-low method of estimating a mixed cost function is that it:

• A) focuses on fixed costs only and ignores variable costs.
• B) usually overestimates the total cost.
• C) is based on a very small portion of the available data.
• D) can only be used if contribution margin income statements are also being used.

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Definitions:

Ethical Guideline

Principles designed to help professionals conduct their work in a morally appropriate manner, ensuring the welfare of those involved.

American Psychological Association

A leading scientific and professional organization representing psychology in the United States, dedicated to advancing the creation, communication, and application of psychological knowledge to benefit society and improve people's lives.

Deception

The act of misleading or deceiving someone by concealing or misrepresenting the truth.

Double-blind Study

A research design in which both the participants and the researchers are unaware of who is in the control group and who is in the experimental group, eliminating bias.