Which Method Are Managers Using When They Use Their Judgment

question 67

Multiple Choice

Which method are managers using when they use their judgment to classify costs as variable, fixed, or mixed?

• A)High-low method
• B)Account analysis
• C)Regression analysis
• D)Low-high method

---

Definitions:

Manufacturing Departments

The sections of a manufacturing organization dedicated to specific production activities or processes.

Total Job Cost

The complete cost associated with a specific job or project, including materials, labor, and overhead.

Predetermined Overhead Rate

The rate used to allocate manufacturing overhead to individual products or job orders, calculated before the period begins based on estimated costs and activity levels.

Machine-Hours

A measure of production time, indicating the total hours that machines have been operating during a given period.