At the Spring Valley Company,the Cost of the Personnel Department

Multiple Choice

At the Spring Valley Company,the cost of the personnel department has always been charged to production departments based upon number of employees.Recently,opinions gathered from the department managers indicate that the number of new hires might be a better predictor of personnel costs.


Which cost estimation method is being used by Spring Valley Company?

A) the simple regression method
B) the conference method
C) the account analysis method
D) the marginal costing method