WK5Assgn+Lindenmuth+L.docx - Assignment Estimating cost functions for Major Retailers October 5 2019 Account classification also referred to as account

WK5Assgn+Lindenmuth+L.docx - Assignment Estimating cost...

This preview shows page 1 - 3 out of 3 pages.

Assignment: Estimating cost functions for Major Retailers October 5, 2019
Image of page 1

Subscribe to view the full document.

Account classification also referred to as account analysis, is a cost estimation method that requires a study of an account in the general ledger. The experienced analysts us the account information as well as their own judgements to determine how costs will behave in the future (VentureLine.com). Because this method is an estimate only and is solely based on information in the general ledger and information from the accountants and their opinion on how the direction of the company is headed, its still not accurate nor does it shows actual data. I would not use this because your taking a big risk with potentially false predictions and inaccurate information. High-low method is a way of attempting to separate out fixed and variable costs given a limited amount of data. It involves taking the highest and lowest levels of activity and comparing the total costs at all levels (Kenton, 2019). This can be a useful very accurate tool to use if the
Image of page 2
Image of page 3
  • Fall '14

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask 0 bonus questions You can ask 0 questions (0 expire soon) You can ask 0 questions (will expire )
Answers in as fast as 15 minutes