When estimating cost functions by using only two data points and disregarding all others, this approach is known as a ________?

Cost Function and Behavior MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

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Subject
Cost Function and Behavioraccounting-mcqs › cost-accounting-mcqs › cost-function-and-behavior
Published
27 Apr 2023
Last updated
28 May 2026

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Explanation

Estimating cost functions by relying solely on two observations while ignoring the rest is considered a limitation of the high-low method, as it may not capture the full variability of the data.

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