select all that apply. the high - low method: uses only two data points; is based on the two most extreme…

select all that apply. the high - low method: uses only two data points; is based on the two most extreme periods of activity; is difficult to apply and requires a statistical software package; generally provides a good estimate of true fixed and variable cost behavior.

select all that apply. the high - low method: uses only two data points; is based on the two most extreme periods of activity; is difficult to apply and requires a statistical software package; generally provides a good estimate of true fixed and variable cost behavior.

Answer

Brief Explanations:

The high - low method uses only the two most extreme data points (highest and lowest activity levels) to estimate fixed and variable costs. It is relatively simple and does not require statistical software. However, it may not always provide the most accurate estimate as it only relies on two data points and ignores other data in the dataset.

Answer:

  • uses only two data points
  • is based on the two most extreme periods of activity