The Method of Cost Estimation That Fits a Cost Line

question 17

Multiple Choice

The method of cost estimation that fits a cost line between two data points is:

• A) least squares regression.
• B) high-low.
• C) account classification.
• D) multiple regression.

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Definitions:

Interest Rates

The cost of borrowing money or the return on investment for savings, typically expressed as a percentage.

Taxes

Compulsory financial charges or levies imposed by a government on individuals or organizations to fund public expenditures.

Aggregate Demand

The total amount of goods and services that all consumers, companies, and the government are willing to buy at a given price level in an economy.

Recessions

A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.