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.

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Definitions:

Agricultural Groups

Communities or societies whose primary mode of subsistence is based on crop farming and livestock raising.

Division of Labor

the allocation of different tasks and roles to different individuals or groups in a society, often based on factors such as skill, age, or gender.

Centralized Political Organization

A governmental structure where power and decision-making processes are concentrated in a central location or authority.

Markets

Systems or environments where parties engage in the exchange of goods, services, or information, often regulated by supply and demand.