To estimate cost functions using account analysis,each account is classified as a ________ cost or ________ cost with respect to ________.
A) mixed; fixed; sales volume in units
B) mixed; variable: sales volume in units
C) variable; fixed; a cost driver
D) mixed; fixed; production in units

Question

Quizplus · Accepted Answer

Account analysis involves classifying each account as either a variable cost or a fixed cost with respect to a cost driver, which is any factor that causes a change in the cost of an activity.

To Estimate Cost Functions Using Account Analysis,each Account Is Classified