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

Multiple Choice

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

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