Which of the Following Estimation Method Is Used by Managers

question 82

Multiple Choice

Which of the following estimation method is used by managers to estimate cost functions when they classify various cost accounts as variable,fixed,or mixed in regard to the identified level of activity?

• A)Industrial Engineering Method.
• B)Conference Method.
• C)Account Analysis Method.
• D)Quantitative Analysis Method.
• E)Work-Measurement Method.

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Definitions:

Operating Activities

The day-to-day activities of a business that are directly related to its principal revenue-generating operations, such as sales and service delivery.

Indirect Method

A cash flow statement reporting approach that adjusts net income for changes in non-cash accounts to compute cash flow from operating activities.

Comparative Balance Sheet

A financial statement that displays a company's financial position at different points in time side-by-side, facilitating period-to-period comparison.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments, reflected in the cash flow statement.