Account analysis is a method used to estimate fixed and variable costs.

Question

Quizplus · Accepted Answer

Account analysis involves examining past financial data and determining which costs are fixed (remain constant regardless of production volume) and which costs are variable (fluctuate based on changes in production volume). By identifying these costs, a company can more accurately predict future expenses and make informed decisions about pricing, production, and profitability.

Account Analysis Is a Method Used to Estimate Fixed and Variable