At the CompanyZ 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 1 2 3

Number of employees 25 50 12

The number of engineers 0 17 2

Which cost estimation method is being used by Company Z?

Account analysis method

B.

Quantitative analysis method

C.

Conference method

D.

Industrial engineering method