Which of the Following Cost Estimation Methods Is Based on Two

question 96

Multiple Choice

Which of the following cost estimation methods is based on two cost observations?

• A) Engineering approach.
• B) High-low method.
• C) Account analysis.
• D) Linear regression.

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Definitions:

Accounts Payable

Liabilities of a business that represent money owed to creditors for goods or services purchased on credit.

Operating Ratios

Financial metrics that assess a company's efficiency and performance by comparing various expenses or costs to its revenue.

Industry Averages

Statistical measures that represent the central tendency or typical values within a specific industry, often used for benchmarking financial or operational performance.

Expense Ratios

The measure of the cost of managing, operating, or investing in a fund, represented as a fraction of the fund's assets.