A Manager Is Trying to Estimate the Manufacturing Costs of a New

question 50

Multiple Choice

A manager is trying to estimate the manufacturing costs of a new product.The company makes several other products that utilize some of the same manufacturing procedures as the new product.Which cost estimation method would be the best method to determine the total cost of manufacturing the new product?

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

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Definitions:

Operating Activities

The day-to-day tasks and transactions related to the primary operations of a business, typically reflected in the cash flow statement.

Cash Payments

Outflows of cash to settle obligations or purchase goods and services, including paying bills, salaries, and other expenses.

Indirect Method

A cash flow statement reporting approach that adjusts net income for the effects of transactions not involving cash flow to compute operating cash flow.

Operating Activities

Business activities and transactions related to the core operations of a company, including revenue-generating and expense activities.