A disadvantage of the high-low method of cost analysis is that: A. It cannot be used when there are a very large number of observations B. It is too time consuming to apply C. It uses two extreme data points, which may not be representative of normal conditions D. It relies totally on the judgment of the person performing the cost analysis 2

answer; maintain a safe following distance;

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a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.