The Cost Estimating Approach That Involves "Eye-Balling" the Closest Fitting

question 61

Multiple Choice

The cost estimating approach that involves "eye-balling" the closest fitting line to the data is the:

• A)scattergraph method.
• B)high-low method.
• C)visual fit method.
• D)regression analysis.

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Definitions:

Average Cost Flow

An inventory valuation method that calculates the cost of goods sold and ending inventory based on the weighted average cost of all inventory items available for sale.

Ending Inventory

Ending inventory is the total value of goods available for sale at the end of an accounting period.

Inventory Items

Inventory items refer to the goods and materials that a business holds for the ultimate goal of resale or processing.

Gross Amount

The total sum before any deductions are made, such as taxes or discounts.