What are the advantages of high low method of foresting?

The high-low method of forecasting offers simplicity and ease of use, making it accessible for quick analysis. It utilizes only the highest and lowest activity levels to estimate variable costs, which can streamline the decision-making process. Additionally, this method helps identify cost behavior patterns by providing a clear visual representation of the relationship between costs and activity levels. However, it is important to note that it may overlook variations in data points between the extremes, potentially leading to less accurate forecasts.