{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Butbetter managementdecisions costpredictionsand

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: provided by that cost function to create the should budgetary forecast for the next year. Answer: FALSE Explanation: Managers are interested in estimating past costbehavior functions because the estimates can help them make more accurate cost predictions, or forecasts, about future costs. But better management decisions, cost predictions, and estimation of cost functions can be achieved only if managers correctly identify the factors that affect costs. Diff: 2 Terms: cost function Objective: 2 AACSB: Reflective thinking 16) The engineering method of cost estimation is based on opinions from various departments and is quick and of low cost to industrial apply. Answer: FALSE Explanation: The conference method Diff: 1 Terms: cost estimation, industrial engineering method Objective: 3 AACSB: Communication 17) The account analysis method of cost estimation classifies account costs as fixed, mixed, or variable using qualitative judgments. Answer: TRUE Diff: 1 Terms: cost estimation, account analysis method Objective: 3 AACSB: Reflective thinking 18) The engineering method uses a formal mathematical method to identify cause -and-effect relationships among past data industrial observations. Answer: FALSE Explanation: Quantitative analysis methods use a formal mathematical method to identify cause-and-effect relationships among past data observations. Diff: 1 Terms: industrial engineering method Objective: 3 AACSB: Reflective thinking 19) The ve analysis method uses a formal mathematical method to identify cause -and-effect relationships among past data quantitati observations. Answer: TRUE Diff: 1 Terms: quantitative analysis method Objective: 3 AACSB: Reflective thinking 20) Individual included in the dependent variable should have the same cost driver or more than one cost function should be estimated. cost items Answer: TRUE Diff: 2 Terms: cost function, dependent variable Objective: 4 AACSB: Reflective thinking 21) The first step in estimating a cost function using quantitative analysis is to identif...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern