Which Cost Estimation Method Does Not Use the Company's Cost

question 23

Multiple Choice

Which cost estimation method does not use the company's cost information as its primary source of information about the relationship between total costs and activity levels?

• A)scattergraph
• B)high-low
• C)account analysis
• D)regression analysis
• E)engineering estimates

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Definitions:

Parent Entity

A company that owns more than half of another company, making the latter a subsidiary.

Debt Financing

The raising of funds through borrowing, typically by issuing bonds or taking out loans, to finance an organization's operations or projects.

Capital

The money and property that a business needs to operate.