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Answer the following questions using the information below: At the Verill Company, the cost of the library and information center has always been charged to

Answer the following questions using the information below:

At the Verill Company, the cost of the library and information center has always been charged to the various departments based upon number of employees. Recently, opinions gathered from the department managers indicate that the number of engineers within a department might be a better predictor of library and information center costs.

Total library and information center costs are $200,000.

Department

A

B

C

Number of employees

135

530

135

Number of engineers

0

80

20

Which cost estimation method is being used by Verill Company?

A.

the regression analysis method

B.

the conference method

C.

the marginal costing method

D.

the operating costing method

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