Which of the Following Cost Estimation Methods Finds the Variable

question 91

Multiple Choice

Which of the following cost estimation methods finds the variable portion of a mixed cost before calculating the fixed portion?

• A) Engineering approach.
• B) High-low method.
• C) Account analysis.
• D) Linear regression.

---

Definitions:

Sales Budget

An estimate of expected sales revenue for a period, forming the basis for planning production, inventory, and cash flow.

Cash Receipts

The total amount of money received by a company during a given period, including all sources of income and revenue.

Cash Disbursements

The outflow of cash for expenses, purchases, or investments by a company during a given period.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including direct materials and labor.