Which Cost Estimation Technique Is Useful in All Situations

question 42

Multiple Choice

Which cost estimation technique is useful in all situations?

• A) Analysis at the account level
• B) Regression analysis
• C) Two-point method
• D) No one method is useful in all situations

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Definitions:

Return on Stockholders' Equity

A measure of financial performance calculated by dividing net income by shareholder equity, indicating how effectively a company uses investor funds.

Average Balance

The mean value of all balances held in an account over a certain period, often used to calculate interest in banking.

Ending Balance

The final amount in an account at the end of an accounting period, reflecting all transactions.

Discontinued Operation

A component of a business that has been sold, abandoned, or otherwise disposed of, which is reported separately from continuing operations on financial statements.