Estimating a Cost Function Using Past Cost Data to Help

question 28

Multiple Choice

Estimating a cost function using past cost data to help determine future costs is useful if:

• A) Past costs are irrelevant and highly discretionary
• B) Past costs are irrelevant and not discretionary
• C) Past costs are relevant and highly discretionary
• D) Past costs are relevant and not discretionary

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Definitions:

Horizontal

Describes a direction parallel to the ground or the horizon; at 90 degrees to the vertical.

Groundwater

Water present beneath the Earth's surface in soil pore spaces and in the fractures of rock formations.

Fractures

Breaks in rock or bone, often as a result of stress exceeding the material's internal strength.

Granite

A coarse-grained igneous rock composed mainly of quartz, feldspar, and mica, often used in construction.