Which of the following is a strength of the account analysis method of cost estimation?
A)The method provides a detailed expert analysis of the cost behavior in each account.
B)The method is based on studies of what future costs should be rather than what past costs have been.
C)The method uses all the observations of cost data.
D)The method is relatively easy to use with computer and sophisticated calculators.

Question

Quizplus · Accepted Answer

The strength of the account analysis method of cost estimation is that it provides a detailed expert analysis of the cost behavior in each account. This allows for a more accurate estimation of future costs based on past behavior. Options B, C, and D are not strengths of this method. Option B describes the regression analysis method, option C describes the high-low method, and option D describes the use of technology in general, rather than specifically for account analysis.

Which of the Following Is a Strength of the Account