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:

Exclusively

Without involving anything or anyone else; solely.

Bloodworms

Aquatic larvae of certain midge species, characterized by their red color due to hemoglobin in the blood, often used as fishing bait and in aquarium feeding.

Coral Reefs

Marine ecosystems characterized by reef-building corals; known for their biodiversity, they are often referred to as the "rainforests of the sea."

Tropical Waters

Warm ocean water found near the equator, characterized by high temperatures and supporting diverse marine life.