Which of the Following Describes a Cost-Estimation Method That Involves

question 14

Multiple Choice

Which of the following describes a cost-estimation method that involves a careful examination of the ledger accounts?

• A) Least squares regression
• B) Visual fit
• C) Account classification
• D) Multiple regression

---

Definitions:

Average Accounting Return

A measure of the profitability of an investment, calculated as the average annual net income divided by the average investment.

Time Value

The concept in finance that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Calculation

The process of determining a numerical result based on mathematical operations or algorithms.

Average Accounting Return

A financial ratio that measures the average net income that a firm generates as a percentage of its average book value of equity.