James Brooks estimated the variable and fixed components of his companys utility costs using the high-low method.
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James Brooks estimated the variable and fixed components of his company’s utility costs using the high-low method. He is concerned that the cost equation that resulted from the high-low method might not provide an accurate representation of his company’s utility costs. What is the inherent weakness of the high-low method? What alternative approach might Brooks use, and what are its advantages?
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The inherent weakness is that the cost formula created by using the highlow appr...View the full answer
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Related Book For 
Managerial Accounting Tools for Business Decision Making
ISBN: 978-1119392422
8th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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