A Limitation of the High-Low Method Is That

Multiple Choice

A limitation of the high-low method is that

A) it is costly to use because it uses a statistical technique to estimate the cost components.
B) it is complex to calculate.
C) it can only be used if the levels of activity cover a wide range.
D) 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.