In Determining Cost Behavior in Business,the Cost Function Is Often

question 18

Multiple Choice

In determining cost behavior in business,the cost function is often expressed as Y = a + bX.Which one of the following cost estimation methods should not be used in estimating fixed and variable costs for the equation? (CMA adapted)

• A)Scattergraph method.
• B)Simple regression.
• C)High and low point method.
• D)Multiple regression.
• E)Management analysis of data.

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Definitions:

Age Cohort

A group of individuals sharing a similar age, who undergo the same life experiences or historical events during a particular time period.

Disability

A physical or mental condition that limits a person's movements, senses, or activities, affecting their daily life and possibly requiring special accommodations.

Normality

The condition or state of conforming to a standard, norm, or expectation that is typical within a society or group.

Rehabilitation

The practice of rehabilitating an individual to their normal state of health or life by means of therapy and training following imprisonment, addiction, or disease.