At the Spring Valley Company, the cost of the personnel department has always been charged to production departments based upon number of employees. Recently, opinions gathered from the department managers indicate that the number of new hires might be a better predictor of personnel costs.
Total personnel department costs are $298,000.

Which cost estimation method is being used by Spring Valley Company?
A) the simple regression method
B) the conference method
C) the account analysis method
D) the marginal costing method

Question

At the Spring Valley Company, the cost of the personnel department has always been charged to production departments based upon number of employees. Recently, opinions gathered from the department managers indicate that the number of new hires might be a better predictor of personnel costs.
Total personnel department costs are $298,000.

Which cost estimation method is being used by Spring Valley Company?
A) the simple regression method 
B) the conference method 
C) the account analysis method 
D) the marginal costing method

Quizplus · Accepted Answer

The Answer of At the Spring Valley Company, the cost of the personnel department has always been charged to production departments based upon number of employees. Recently, opinions gathered from the department managers indicate that the number of new hires might be a better predictor of personnel costs.
Total personnel department costs are $298,000.

Which cost estimation method is being used by Spring Valley Company?
A) the simple regression method 
B) the conference method 
C) the account analysis method 
D) the marginal costing method

At the Spring Valley Company, the Cost of the Personnel