Which cost estimation method may use time-and-motion studies to analyze the relationship between inputs and outputs in physical terms?
A) the accrual accounting method
B) the high-low method
C) the industrial engineering method
D) the cash accounting method

Question

Quizplus · Accepted Answer

The industrial engineering method uses time-and-motion studies to analyze the relationship between inputs and outputs in physical terms. This method is commonly used in manufacturing and production industries where physical labor and equipment usage are significant cost drivers. The other options, accrual accounting method, high-low method, and cash accounting method, do not involve physical measurements, and are used to estimate costs or analyze financial transactions.

Which Cost Estimation Method May Use Time-And-Motion Studies to Analyze