Answer the Following Questions Using the Information Below:
at the Gregan

Answer the following questions using the information below:
At the Gregan Company,the cost of the personnel department has always been charged to production departments based upon number of employees.Recently,opinions gathered from the department managers indicate that the number of new hires might be a better predictor of personnel costs.
Total personnel department costs are $320 000.
$$\begin{array} { l r r r } \text { Department } & \underline { \mathbf { A } } & \underline { \mathbf { B } } & \underline { \mathrm { C } } \\\text { Number of employees } & 30 & 270 & 100 \\\text { The number of new hires } & 8 & 12 & 5\end{array}$$
-Which cost estimation method is being used by Gregan Company?

A) The industrial engineering method
B) The quantitative analysis method
C) The account analysis method
D) The conference method