In Which Step of Estimating a Cost Function Using Quantitative

question 36

Multiple Choice

In which step of estimating a cost function using quantitative analysis would a manager estimate a cost function with the high-low method,or regression analysis?

• 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 of the Cost Driver.
• D)Step 4: Plot the Data.
• E)Step 5: Estimate the Cost Driver of the Estimated Cost Function.

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Definitions:

Job Ranking Method

A simple evaluation system where jobs are ranked in order based on their perceived value or complexity.

Point System

A method used to track, measure, or assign value to certain actions, behaviors, or outcomes, often used in performance evaluation or reward programs.

Lag Strategy

A business approach where a company chooses to delay action or innovation, often to observe competitors' performance or reduce risk.

Compensation Philosophies

The underlying beliefs and principles that guide how an organization values and rewards its employees' contributions and efforts.