Place the Six Cost Estimation Steps into the Correct Order

question 21

Multiple Choice

Place the six cost estimation steps into the correct order:

1. Determine the cost drivers
2. Graph the data
3. Select and employ the appropriate estimation method
4. Define the cost object for which the related costs are to be estimated
5. Evaluate the accuracy of the cost estimate
6. Collect consistent and accurate data on the cost object and the cost drivers

• A) 6,4,1,3,5,2.
• B) 4,1,6,2,3,5.
• C) 2,1,4,3,6,5.
• D) 1,3,4,6,5,2.

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Definitions:

Employee

An individual who works part-time or full-time under a contract of employment, contributing labor and expertise to an employer.

Customer

An individual or business that purchases goods or services from another entity, often considered the most significant component in the business world.

Stakeholders

Individuals or groups that have an interest or stake in the outcome of a project, initiative, or company.

Corporate Shareholders

Individuals or entities that own shares in a corporation and have potential financial gains or losses depending on the company's performance.