Account analysis _____.
A)is subjective, requiring judgment by the analyst
B)is more expensive than engineering analysis
C)cannot be used for mixed costs
D)does not require recording relevant cost accounts and cost drivers

Question

Quizplus · Accepted Answer

Account analysis is a subjective method that involves judgment by the analyst. This is because it involves the interpretation of financial data and the identification of relevant cost accounts and cost drivers. The other options are incorrect: engineering analysis is typically more expensive than account analysis, account analysis can be used for mixed costs, and relevant cost accounts and cost drivers must be recorded for account analysis to be effective.

Account Analysis _____