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-True or false: An important element in helping managers make decisions is knowing the actual cost associated with the decision. -Activities measured by volume can use cost drivers that include machine-hours units of output -When using the general methods to estimate cost behavior, it is a good idea to use multiple methods so results can be compared results are likely to differ from method to method. -A company can use engineering estimates to identify where a cushion or slack exists in its operations. -The account analysis method relies on past experience reviews each cost account used -When managers make decisions, they need to compare the costs and the benefits among alternative actions. -An activity level within which a given total fixed cost or unit variable cost will be unchanged is called the relevant range -Costs that change proportionately with activity levels are variable costs -Which of the following methods are used to estimate cost behavior? Account analysis Engineering estimates Statistical analysis -When beginning a statistical analysis of costs and activities, it is helpful to plot the costs against the activities using a(n) scattergraph -Which of the following are advantages of using the engineering estimates method? Does not require prior data Details each step of the operation -A method to estimate costs based on two cost observations at two activity levels is called high-low cost estimation. -The cost estimation method that calls for a review of each account used to record costs is called the account analysis method -The statistical technique designed to generate a line that best fits a set of data points is called Regression Cost estimating is a valuable tool that is used in each of the acquisition phases. There are a number of cost estimating techniques that can be used in estimating the costs of a future and current weapon system. The use of a specific approach will depend on how much information is available and where the weapon system is in its development and
lifecycle. Most programs will use multiple techniques to get a good cross-reference of the accuracy of their estimates. A few of the most common cost estimating techniques are : Updated: 2/24/2022 Rank: G5 Which of the following methods is used to estimate costs?The four major analytical methods or cost estimation techniques used to develop cost estimates for acquisition programs are Analogy, Parametric (Statistical), Engineering (Bottoms Up), and Actual Costs.
Which of the following cost estimation method relies only to two data points?Which of the following methods of cost estimation relies on only two data points? a. Least-squares regression.
What percentage of the changes in machine maintenance cost is explained by the independent variable?R2, or the coefficient of determination, is interpreted as the variation in the dependent variable (Y)explained by the independent variable (X). As such, 0.733 or 73.33% (rounded to 73.3%) of the variation in maintenance costs is explained by the independent variable, which, in this situation, machine hours.
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