Which Cost Estimation Method Does Not Use the Company's Cost

question 102

Multiple Choice

Which cost estimation method does not use the company's cost information as its primary source of information about the relationship between total costs and activity levels?

• A) Scattergraph.
• B) High-low.
• C) Account analysis.
• D) Engineering estimates.

---

Definitions:

Service Business

A business model focused on delivering non-physical products or services to its consumers.

Overhead

The indirect costs or expenses associated with operating a business, including administrative, office, and rented space expenses.

Materials Ledger

A record of the quantity and value of materials on hand, received, and issued during a period.

Subsidiary Ledger

A detailed ledger that supplements a general ledger by providing detailed information for individual accounts, such as accounts payable or receivable.