Isondo's TV and Appliance Store Is a Small Company That

Multiple Choice

Isondo's TV and Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 2015 operations.
$$\begin{array} { l r } \text { Sales (1,200 televisions) } & \$ 1,200,000 \\\text { Cost of goods sold } & 540,000 \\\text { Store manager's salary per year } & 108,000 \\\text { Operating costs per year } & 216,000 \\\text { Advertising and promotion per year } & 24,000 \\\text { Commissions ( } 3 \% \text { of sales) } & 36,000\end{array}$$
-Which cost estimation method is being used by Isondo's TV and Appliance Store?

A) the operating costing method
B) the marginal costing method
C) the account analysis method
D) the cost-volume-profit analysis method