Figure 3-3
The Sandoval Company has four process engineers that are each able to process 1,500 design changes. Last year 5,250 design changes were produced by the four engineers. Each engineer is paid $60,000 per year
-The method for analyzing cost behavior that generally classifies general ledger accounts is
A) account analysis method.
B) multiple regression method.
C) industrial engineering method.
D) learning curve method.

Question

Quizplus · Accepted Answer

The account analysis method is used to classify general ledger accounts and analyze their behavior by looking at historical data and changes in account balances. This method would be appropriate for analyzing the costs associated with the process engineers at the Sandoval Company.

Figure 3-3 The Sandoval Company Has Four Process Engineers That Are Each