Which of the following is a weakness of the account analysis method of cost estimation?
A)The method is not particularly useful when the physical relation between inputs and outputs is indirect.
B)The method is subjective.
C)The method requires that several relatively strict assumptions be satisfied.
D)The method is based on studies of what future costs should be rather than what past costs have been.

Question

Quizplus · Accepted Answer

The account analysis method of cost estimation is subjective because it involves judgment in classifying costs as either variable or fixed, which can vary from one person to another.

Which of the Following Is a Weakness of the Account