Assuming That a Cost Is Mixed and Linear, and That

question 56

Multiple Choice

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

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

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Definitions:

Ingratiation

A psychological technique aimed at making oneself more attractive or appealing to others, often through flattery or attempts to please.

Pressure

The use of persuasion, influence, or intimidation to make someone do something, or the feeling of stress or urgency caused by the expectation of achieving a particular outcome.

Compliance

Adherence to laws, regulations, guidelines, and specifications relevant to its business processes.

Routine Requests

Standard or common inquiries or petitions that follow a predictable pattern.