Which of the Following Is Not a Step in the Typical

question 9

Multiple Choice

Which of the following is not a step in the typical cost estimation process?

• A) Determine the cost drivers.
• B) Determine the time required for building the model.
• C) Select and employ the estimation method.
• D) Graph the data.

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Definitions:

Fixed Manufacturing Cost

Costs that remain constant regardless of the level of production or sales activities, such as salaries, rent, and depreciation on manufacturing equipment.

Production Volume

The total quantity of products or goods produced by a company within a specific period.

High-low Method

A technique used in cost accounting to estimate fixed and variable costs associated with production by analyzing the highest and lowest levels of activity.

Maintenance Cost

Expenditures associated with the upkeep of buildings, equipment, and machines to ensure efficient operation and prolong their life.