Which of the following statements is true? The engineering approach to the analysis of mixed costs involves a detailed statistical analysis of cost behavior using methods that minimize the squared errors. A major advantage of the high-low method of cost estimation is that it omits all data from the analysis other than the lowest and highest costs. Managers can use a variety of methods to estimate the fixed and variable components of a mixed cost. In account analysis, an account is classified as either variable or fixed based on the analysts prior knowledge of how the cost in the account behaves.