The Method of Estimating Long-Run Costs in Which Knowledgeable Professionals

question 29

Multiple Choice

The method of estimating long-run costs in which knowledgeable professionals familiar with production facilities and processes calculate optimal combination of inputs to produce given quantities and then estimate costs is known as

• A)engineering cost estimating.
• B)the survivorship method.
• C)regression analysis.
• D)None of the above

---

Definitions:

Beginning Inventory

The value of all the inventory held by a company at the start of its accounting period.

Work In Process

Inventory that includes items currently being manufactured but not yet completed.

Units

The individual items or product quantities produced or sold by a business.

FIFO Method

An inventory valuation method that assumes items purchased or produced first are sold first, and the newer inventory remains unsold.