Which cost estimation method would involve analyzing direct labor subsidiary accounts and classifying costs as as variable, fixed, or mixed to derive cost estimation formulas?
A) the account analysis method
B) the conference method
C) the marginal costing method
D) the incremental costing method

Question

Quizplus · Accepted Answer

The account analysis method involves analyzing direct labor subsidiary accounts and classifying costs as variable, fixed, or mixed to derive cost estimation formulas. The conference method involves experts sharing their opinions to come up with an estimate, while the marginal costing method and incremental costing method are specific costing techniques that do not involve analyzing direct labor subsidiary accounts.

Which Cost Estimation Method Would Involve Analyzing Direct Labor Subsidiary