Which of the following estimation method is used by managers to estimate cost functions when they classify various cost accounts as variable,fixed,or mixed in regard to the identified level of activity?
A)Industrial Engineering Method.
B)Conference Method.
C)Account Analysis Method.
D)Quantitative Analysis Method.
E)Work-Measurement Method.

Question

Quizplus · Accepted Answer

Account Analysis Method is the most appropriate method for managers to estimate cost functions when they classify various cost accounts as variable, fixed, or mixed in relation to the identified level of activity. This method involves analyzing each account and determining whether it is variable, fixed, or mixed and then using this information to estimate the cost function.

Which of the Following Estimation Method Is Used by Managers