Which cost estimation method analyzes accounts in the subsidiary ledger as variable,fixed,or mixed using qualitative methods?
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 is a cost estimation method that analyzes accounts in the subsidiary ledger as variable, fixed, or mixed using qualitative methods. It is a subjective method that relies on the judgment of the accountant or analyst. The conference method involves obtaining opinions from multiple experts, and the marginal and incremental costing methods are quantitative methods that focus on analyzing the costs of producing additional units.

Which Cost Estimation Method Analyzes Accounts in the Subsidiary Ledger