Final answer:
The industrial engineering method and the account analysis method are used to determine cost behavior, which is crucial in managerial accounting for planning and decision-making.
Step-by-step explanation:
The industrial engineering method and the account analysis method are judgment-based methods of determining cost behavior. In the realm of managerial accounting and cost accounting, understanding how costs change in relation to different levels of activity is crucial for planning, control, and decision-making.
An ability to apply knowledge of mathematics, science, and engineering is needed to analyze cost behavior. Mathematical models and experiments can be designed to estimate costs and interpret data effectively, drawing a connection to how a good basketball player understands the game's physics instinctively without calculations.
Similarly, cost behaviors can be estimated through judgment-based methods, translating the physical and economic realms into actionable business insights within realistic constraints such as economic, environmental, social, political, ethical, health and safety, manufacturability, and sustainability. These insights help businesses in the idea generation phase and designing a system, component, or process to meet desired needs effectively.