Which of the following methods of determining cost behavior uses average account values and average driver values to calculate fixed costs and variable rates?
A)The industrial value costing method
B)The account analysis method
C)The learning average curve model
D)The confidence interval driver model

Question

Quizplus · Accepted Answer

The account analysis method calculates fixed costs and variable rates by analyzing past account values and identifying the driver that best explains the cost behavior. It uses average account values and average driver values as inputs. The other methods mentioned (industrial value costing method, learning average curve model, and confidence interval driver model) are not commonly used for determining cost behavior.

Which of the Following Methods of Determining Cost Behavior Uses