In Which Step of Estimating a Cost Function Using Quantitative

question 18

Multiple Choice

In which step of estimating a cost function using quantitative analysis would a manager realize all items of costs in the dependent variable have different cost drivers?

• A)Step 1: Choose the Dependent Variable.
• B)Step 2: Identify the Independent Variable,or Cost Driver.
• C)Step 3: Collect Data of the Dependent Variable and the Cost Driver.
• D)Step 4: Plot the Data.
• E)Step 5: Estimate the Cost Drive of the Estimated Cost Function.

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Definitions:

Transform Resources

Involves altering or developing organizational resources to enhance efficiency or achieve a specific goal.

Operating Efficiencies

The capability of a firm to maximize outputs from given inputs, thereby minimizing its costs.

Competitive Advantage

The attributes or capabilities that allow an organization to outperform its competitors, typically leading to greater market share or profitability.

Technology

The application of scientific knowledge for practical purposes, particularly in industry, to create tools, systems, or methods that solve problems or facilitate processes.