?Which of the following statements related to cost estimation methods is true
Q: Give me a model How Efficient is the Engineering Estimation Technique for Cost Estimation?
A: At whatever point we build up a product project, principle addresses that emerge to us is the amount…
Q: Explain the implementation issues of the cost estimation methods
A: Cost estimation is the process of determining the probable cost of a product before starting the…
Q: ost flow methods and assumptions. What
A: The different cost flow methods and assumptions are as follows: FIFO LIFO Weighted average
Q: analysis? What are identified as possible risks associated with cost
A: Definition: A technique for calculating the costs related to a business prospect or proposal, as…
Q: Define the following terms: (a) cost behavior and (b) relevant range.
A: Cost behavior and relevant range are terms under cost accounting. Cost behavior studies the pattern…
Q: types of cost drivers with example?
A: Explain the types of Cost Drivers.
Q: Requirements a. What is the slope coefficient? b. What is the constant for the estimated cost…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: Describe the visual-fit method of cost estimation. What are the main strengths and weaknesses of…
A:
Q: What are the advantages and disadvantages of cost principle
A: Cost principle is an accounting principle that recognizes the asset at their respective cash amounts…
Q: What Is the Benefit-Cost Ratio Calculation?
A: Benefit-cost ratio: It can be defined as a financial ratio that shows a relationship between the…
Q: What is the economic rationale for the cost approach? Under what conditions would the cost approach…
A: Answer: Economic rationale for cost approach: The cost approach means that the person who is…
Q: What is the cost measurement? cost accumulation? what is the difference between the two?
A: Cost is the monetary value of an item or a service. While producing an item, there may be various…
Q: Using the high-low method, determine the cost function for each cost?
A: High low method of cost estimation says that costs at highest level and lowest level are to be taken…
Q: How do step-wise costs and curvilinear costs differ?
A: There are different types of costs such as variable costs, fixed costs, step costs, and curvilinear…
Q: How does an engineered cost differ from a discretionary cost?
A:
Q: cost equation?
A: Consider the cost equation Y = a + bX, where, Y = Total cost a = Fixed cost. b = Variable cost per…
Q: What assumptions are made when using the simplest version of the economic-order-quantity (EOQ)…
A:
Q: What is a relationship between fixed, variable and semi-variable cost?
A: Cost can be defined as the amount incurred upon the production of goods and services for the final…
Q: what is the definition and significance of contribution margin ratio
A: Contribution margin ratio Contribution margin ratio is also profit-volume ratio. It helps us to…
Q: What is the purpose of using standard costs?
A:
Q: Why there is a need to identify the standard co
A: Standard Cost A standard cost is an estimated expense that normally occurs during the production of…
Q: Why base measurement on historical costs?
A: Historical cost: Historical cost explains that assets and liabilities appear in the financial…
Q: What two assumptions are frequently made when estimating a cost function?
A: Cost Function:Cost function represents the basic change that occurs in the total cost due to the…
Q: How do I verify that Harlows actual cost figures are correct?
A: Total Cost=Direct material+Direct labor+Variable Overhead+Fixed Overhead
Q: Describe the concept of the INITIAL DIRECT COSTS?
A: Definition: Initial direct costs: Initial direct costs refer to the costs that a lessor incurs…
Q: Explain the difference between a controllable and a noncontrollable cost.
A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…
Q: Describe the difference between prime costs and conversion costs?
A: Solution:- Difference between prime costs and conversion costs as follows under:-
Q: Discuss the techniques that can be applied to obtain relevant and accurate cost estimates.
A: The question is based on the concept of cost estimation, which is one the most important parameter…
Q: Discuss the Cost- Volume- Profit assumptions
A: Cost-volume-profit analysis: It is also called break-even analysis which measures the impact on…
Q: Y,a,b and X explain these with help of examples according to cost behaviour
A: Cost behavior analysis helps to understand the change in the total cost with respect to the change…
Q: What is recalculated cost?
A: Cost: It implies to the amount that is paid or spent on a specified task or activity. It indicates…
Q: Which of the following statements is true? Select one: one: a. The most complex of the cost…
A: High-low method: It is the method of estimating the variable cost per unit and the fixed costs by…
Q: Define the following terms: differential cost, sunk cost, and opportunity cost.
A: Differential cost: Differential cost is the change in total cost due to increase or decrease in…
Q: ases? or only in t
A: The explanation is given below ,
Q: Describe the Define the term Benefit-Cost Ratio?
A: Cost benefit analysis is a quantitative approach used by top level management to evaluate the…
Q: What does it mean that a cost is a direct, product, and variable cost?
A: The cost represents the value incurred by the corporation in making the product ready to sell in the…
Q: Which of the following is the best definition of a variable cost?
A: Types of Costs 1. Variable Cost: The cost which changes with the change in the level of activity is…
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- Which of the following statements related to cost estimation methods is true? O a. The most complex method of cost estimation is the high-low method. O b. The high-low method is the most accurate and reliable method to determine the cost behavior compared to scatter-graph plot and least-squares regression methods. O c. The low-high method is used to derive an estimated line of cost behavior by graphically connecting the two cost amounts identified with the highest and lowest volume levels. O d. Only high-low method has a slope and an intercept. O . None of the given answers.Which of the following statements related to cost estimation methods is true ? a . Only high -low method has a slope and an intercept . b. The scatter - graph method is used to derive an estimated line of cost behavior by graphically connecting the two cost amounts identified with the highest and lowest volume levels . c. The most complex method of cost estimation is the high - low method . d. The least -squares regression method is the most accurate and reliable method to determine the cost behavior compared to scatter -graph plot and high -low methods . e. None of the given answersWhich of the following statements related to cost ?estimation methods is true .a None of the given answers .b The most complex method of cost .estimation is the high-low method .c The scatter-graph method is used to derive an estimated line of cost behavior by graphically connecting the two cost amounts identified with the highest and lowest volume levels .d The three methods determine a slope and an .intercept .e The high-low method is the most accurate Ox and reliable method to determine the cost behavior compared to scatter-graph plot and least-squares regression methods
- Which of the following statements related to cost estimation methods is false? a. The least-squares regression method is the most accurate and reliable method to determine the cost behavior compared to scatter-graph plot and high-low methods. O b. The low-high method is used to derive an estimated line of cost behavior by graphically connecting the two cost amounts identified with the highest and lowest volume levels. O c. The most complex method of cost estimation is the high-low method. O d. None of the given answers. O e. The three methods determine a slope and an intercept.Which of the following methods of cost estimation relies on only two data points?A. the high-low methodB. account analysisC. least-squares regressionD. SWOT analysis.Which of the following statements related to cost estimation methods is true? O a. The low-high method is used to derive an estimated line of cost behavior by graphically connecting the two cost amounts identified with the highest and lowest volume levels. O b. The high-low method is the most accurate and reliable method to determine the cost behavior compared to scatter-graph plot and least-squares regression methods. O c. None of the given answers. O d. Only high-low method has a slope and an intercept. e. The most complex method of cost estimation is the high-low method.
- Which of the following statements related to cost estimation methods is false? O a. The most complex method of cost estimation is the high-low method. The low-high method is used to derive an estimated line of cost behavior by graphically connecting the two cost amounts identified with the highest and lowest volume levels. None of the given answers. O d. The least-squares regression method is the most accurate and reliable method to determine the cost behavior compared to scatter-graph plot and high-low methods. e. The three methods determine a slope and an intercept.Which of the following statements related to cost estimation methods is false? The least-squares regression method is the most accurate and reliable method to determine the cost behavior compared to scatter-graph plot and high-low methods. O b. The low-high method is used to derive an estimated line of cost behavior by graphically connecting the two cost amounts identified with the highest and lowest volume levels. The three methods determine a slope and an intercept. O d. None of the given answers. The most complex method of cost estimation is the high-low method.Which of the following are assumptions associated with the cost equation? Check all that apply. The cost equation is used to estimate costs at a variety of volume levels Cost estimates are valid within a discrete range of volumes Per unit variable costs represent the slope of a cost equation Cost equations are linear
- _____Identifying the relationship between the activity and the costs is a key step in which of the following cost estimation methods? a) Scattergraph. b) High-low method. c) Linear regression. d) Account analysis.An easy way to estimate the variable and fixed costs components of a mixed cost is by: 1. a scatter plot 2. the high-low method 3. a regression analysis 4. a guesstimateExplain how the high-low method is used for cost estimation. What, if any, are the limitations of this approach to cost estimation?