Unformatted text preview: estimate variable costs. Advantages of the high-low method are that any two people using a particular set of data will come up with the same answer. The high low method gives quick estimation. Only two points of data are needed. The disadvantages of the high-low method are that the high and low points may not be representative of the cost-activity relationship. High and low points can be outliers and may represent atypical cost-activity relationships. Even if these points are not outliers, other pairs of points may clearly be more representative. Jack...
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- Fall '10
- Pease, lowest levels, low points, Threaded Discussion Questions