Answer the following questions using the information below:
Stosur Courtside Caterers is a small company that has hired you to perform some management advisory services.The following information pertains to 2018 operations.
$$\begin{array} { l r }
\text { Sales (5000 microwave ovens) } & \$ 1350000 \
\text { Cost of goods sold } & 540000 \
\text { Store manager's salary per year } & 75000 \
\text { Operating costs per year } & 225000 \
\text { Advertising and promotion per year } & 25000 \
\text { Commissions (4\% of sales) } & 67500
\end{array}$$
-Which cost estimation method is being used by Stosur Courtside Caterers?
A)The quantitative analysis method
B)The industrial engineering method
C)The conference method
D)The account analysis method

Question

Answer the following questions using the information below:
Stosur Courtside Caterers is a small company that has hired you to perform some management advisory services.The following information pertains to 2018 operations.
 $$\begin{array} { l r } 
\text { Sales (5000 microwave ovens) } & \$ 1350000 \
\text { Cost of goods sold } & 540000 \
\text { Store manager's salary per year } & 75000 \
\text { Operating costs per year } & 225000 \
\text { Advertising and promotion per year } & 25000 \
\text { Commissions (4\% of sales) } & 67500
\end{array}$$
-Which cost estimation method is being used by Stosur Courtside Caterers?
A)The quantitative analysis method
B)The industrial engineering method
C)The conference method
D)The account analysis method

Quizplus · Accepted Answer

The account analysis method is being used here, as the costs are categorized into different accounts (e.g., cost of goods sold, operating costs, advertising and promotion, etc.), and some costs are directly associated with sales levels (e.g., commissions as a percentage of sales). This method involves reviewing account information to classify costs as either variable or fixed.

Answer the Following Questions Using the Information Below: Stosur Courtside

Answer the Following Questions Using the Information Below:
Stosur Courtside