Using the Account Classification Method, Estimating the Change in Variable

question 1

Multiple Choice

Using the account classification method, estimating the change in variable costs involve three steps.Which of the following is correct?

• A)I.Sum the costs classified as fixed to obtain the total fixed costs for the most recent period. II.Multiply the amount in (I) by the volume of activity for the corresponding period to estimate the unit fixed cost.
• III)Divide (2) by the change in activity to estimate the total controllable cost.
• B)I.Sum the costs classified as fixed to obtain the total fixed costs for the most recent period. II.Divide the amount in (I) by the volume of activity for the corresponding period to estimate the unit fixed cost.
• III)Multiply (2) by the change in activity to estimate the total controllable cost.
• C)I.Sum the costs classified as variable to obtain the total variable costs for the most recent period. II.Multiply the amount in (I) by the volume of activity for the corresponding period to estimate the unit variable cost.
• III)Divide (2) by the change in activity to estimate the total controllable cost.
• D)I.Sum the costs classified as variable to obtain the total variable costs for the most recent period. II.Divide the amount in (I) by the volume of activity for the corresponding period to estimate the unit variable cost.
• III)Multiply (2) by the change in activity to estimate the total controllable cost.

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Definitions:

Underground Railroad

A network of secret routes and safe houses used in the United States during the 19th century to help enslaved African Americans escape to free states and Canada.

Historical Significance

The importance or impact that a particular event, figure, or development has had in history, influencing the future or shaping societal norms.

Slave Resistance

Acts of defiance or rebellion by enslaved people against their conditions and slaveholders.

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An African American social reformer, abolitionist, orator, writer, and statesman who escaped from slavery and became a leader of the abolitionist movement.