The Account Analysis Approach to Estimating Fixed and Variable Costs

question 138

Multiple Choice

The account analysis approach to estimating fixed and variable costs

• A)requires at least five years of historical data.
• B)is based on the professional judgment of the manager.
• C)is not useful for general and selling expenses.
• D)is only used if the data for the high-low method or regression analysis is not available.

---

Definitions:

Cedar Wood

A type of softwood that is known for its durability, resistance to decay, and aromatic properties, commonly used in furniture, building materials, and clothing storage.

Decision-Making Process

A series of steps taken by an individual or a group to identify and evaluate options and make a choice among alternatives.

Familiar

Well-known or easily recognized by many people due to exposure or experience.

Retirement Account

A financial account specifically designed for saving and investing funds to support individuals financially in their retirement years.