In Determining Cost Behavior in Business, the Cost Function Is

question 89

Multiple Choice

In determining cost behavior in business, the cost function is often expressed as Y = a + bX. Which one of the following cost estimation methods should not be used in estimating fixed and variable costs for the equation? (CMA adapted)

• A) Scattergraph method.
• B) Simple regression.
• C) High and low point method.
• D) Management analysis of data.

---

Definitions:

Virginia

A state in the southeastern United States, known for its significant history in the founding of America, including being the site of the first permanent English settlement in Jamestown.

Maryland's Founder

Refers to George Calvert, 1st Lord Baltimore, who played a pivotal role in the founding of the Province of Maryland as a haven for English Catholics.

Cecilius Calvert

The second Lord Baltimore, an English nobleman who founded the colony of Maryland in the 17th century as a haven for English Catholics.

Feudal Domain

Lands during the Middle Ages under the control of a lord or noble, governed based on feudalism where peasants worked the land in exchange for military protection.