Selecting a volume-related cost driver and classifying each account as a variable cost or a fixed cost is called ________.
A)engineering analysis
B)high-low method
C)visual-fit method
D)account analysis

Question

Quizplus · Accepted Answer

The process described in the question is known as account analysis, which involves examining each account in the company's financial statements and determining whether it is a variable or fixed cost. This analysis is then used to select an appropriate cost driver for the company's volume-related expenses. Options A, B, and C are unrelated to the process described in the question.

Selecting a Volume-Related Cost Driver and Classifying Each Account as a Variable