Question: A significant weakness of the high - low method is that monthly data must be collected for at least three years before the method can
A significant weakness of the highlow method is that
monthly data must be collected for at least three years before the method can be used.
the calculations are so complex that a computer is usually necessary in order to get accurate results.
the two data points that are used may not be representative of the general relationship between cost and activity.
a significant amount of management expertise is necessary to break out the variable and fixed costs.
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