When managers use their judgment to classify costs as variable,fixed,or mixed,which method are they using?
A)Account analysis
B)High-low method
C)Regression analysis
D)Low-high method

Question

Quizplus · Accepted Answer

Account analysis is the method of classifying costs based on the manager's judgment and experience. The manager will analyze each cost and determine whether it is variable, fixed, or mixed based on their knowledge of the business and its operations. This method is subjective but can be useful when there is not enough data available to use other methods like the high-low method or regression analysis.

When Managers Use Their Judgment to Classify Costs as Variable,fixed,or