Assuming That a Cost Is Mixed and Linear, and That

question 35

Multiple Choice

Assuming that a cost is mixed and linear, and that past cost behaviour is expected to continue into the future, which of the following is mostly likely the best technique for estimating future costs?

• A) Regression analysis
• B) Two-point method
• C) Scatter plot
• D) Engineered estimate of cost

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Definitions:

Fetus

A developing human from approximately the end of the eighth week after conception until birth.

Prenatal Development

The process of growth and development within the womb from the formation of an embryo through to the development of a fetus until birth.

Central Nervous System

The Central Nervous System (CNS) is comprised of the brain and spinal cord, functioning as the main processing center for the entire nervous system, controlling thoughts, movements, and bodily functions.

Lanugo

Lanugo is fine, soft hair that covers the body of a fetus or a newborn as a form of insulation, which is usually shed before or shortly after birth.