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johnnyappleseed johnnyappleseed
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2 months ago
A limitation of the high-low method is that

▸ it is costly to use because it uses a statistical technique to estimate the cost components.

▸ it can only be used if the levels of activity cover a wide range.

▸ because it is based on only two extreme points, the high and low activity levels, the cost equation may not be truly representative of the cost relationship.

▸ it is complex to calculate.
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Managerial Accounting

Managerial Accounting


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nguyenphuc1990nguyenphuc1990
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2 months ago
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because it is based on only two extreme points, the high and low activity levels, the cost equation may not be truly representative of the cost relationship.
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johnnyappleseed Author
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2 months ago
Thank you, thank you, thank you!
rene_ram97
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Yesterday
Helped a lot
rhockeygirl
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2 hours ago
Thanks
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