Quantitative Analysis Methods Estimate Cost Functions

question 112

Multiple Choice

Quantitative analysis methods estimate cost functions:

• A)which depend on the experience and judgment of the analyst for accuracy
• B)based on analysis and opinions gathered from various departments
• C)using significant amounts of historical data
• D)using the pooling of knowledge from each value chain function

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Definitions:

Direct Labour-Hours

The total hours worked by employees directly involved in manufacturing a product.

Variable Manufacturing Overhead

Manufacturing costs that vary in total directly with changes in production volume, such as utility costs or raw material consumptions.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a specific product.

Actual Hours

The real number of hours worked, as opposed to planned or scheduled hours.