A Company Has Identified the Appropriate Cost Driver for a Resource

question 119

Multiple Choice

A company has identified the appropriate cost driver for a resource cost.To estimate or approximate the cost function,the company manager has a broad selection of methods that will NOT include ________.

• A) least squares regression analysis
• B) activity analysis
• C) high-low method
• D) engineering method

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Definitions:

Ethanol

A type of alcohol that is produced when corn, sugarcane, and other plant material is soaked in ammonia, fermented, and distilled.

Hydroelectric Dams

Structures built across rivers to control water flow and generate electricity through the movement of water through turbines.

Greenhouse Gases

Gases in Earth's atmosphere that trap heat, including carbon dioxide and methane, contributing to global warming and climate change.

Sediment

Particles of rock, organic material, or minerals that are transported and deposited by wind, water, or ice, often forming sedimentary layers.