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 method involves analyzing each cost and deciding whether it is variable or fixed based on the manager's judgment and experience. This method is often used when other quantitative methods like high-low or regression analysis are not feasible or reliable.

When Managers Use Their Judgment to Classify Costs as Variable