M & G TV and Appliance Store is a small company that has hired you to perform some management advisory services.The following information pertains to 2017 operations.

Which cost estimation method is being used by M & G TV and Appliance Store?
A)the operating costing method
B)the marginal costing method
C)the account analysis method
D)the cost-volume-profit analysis method

Question

M & G TV and Appliance Store is a small company that has hired you to perform some management advisory services.The following information pertains to 2017 operations.

Which cost estimation method is being used by M & G TV and Appliance Store?
A)the operating costing method 
B)the marginal costing method 
C)the account analysis method 
D)the cost-volume-profit analysis method

Quizplus · Accepted Answer

The account analysis method involves a detailed review of the company's accounts and records to identify the various costs incurred by the company. This method is commonly used by small companies that do not have the resources to conduct a more comprehensive cost analysis. Given that M & G TV and Appliance Store is a small company, it is likely that they are using the account analysis method to estimate their costs. The other methods listed (operating costing, marginal costing, and cost-volume-profit analysis) are more complex and require more resources, making them less suitable for a small business.

M & G TV and Appliance Store Is a Small