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