A Manager Is Trying to Estimate the Manufacturing Costs of a New

question 85

Multiple Choice

A manager is trying to estimate the manufacturing costs of a new product. The company makes several other products that utilize some of the same manufacturing procedures as the new product. Which cost estimation method would be the best method to determine the total cost of manufacturing the new product?

• A) Engineering estimates.
• B) Regression analysis.
• C) Account analysis.
• D) Scattergraph.

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Definitions:

Productive

Characterized by achieving significant results or output relative to the input or effort expended.

Total Asset Turnover

A financial ratio that measures the effectiveness of a company in utilizing its assets to generate sales or revenue.

Net Sales

The total revenue from goods or services sold by a company, after deducting returns, allowances for damaged goods, and discounts.

End-of-Year

A term that refers to the conclusion of a fiscal or calendar year, a time often used for accounting and inventory purposes.