Estimating answer true diff2 terms costfunction

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Unformatted text preview: y the independent variable. Answer: FALSE Explanation: The first step in estimating a cost function using quantitative analysis is to identify the dependent variable. Diff: 2 Terms: cost function, dependent variable Objective: 4 AACSB: Reflective thinking 22) In a cost function using quantitative analysis, the independent variable is the factor used to predict the dependent variable. estimating Answer: TRUE Diff: 2 Terms: cost function, dependent variable, independent variable Objective: 4 AACSB: Reflective thinking 23) An of time-series data is to compile maintenance costs of twelve different manufacturing plants incurred during 20X5. example Answer: FALSE Explanation: An example of crossDiff: 1 Terms: cost estimation, cost function Objective: 4 AACSB: Reflective thinking 24) Evidence of relationships and extreme observations are highlighted when costs and their cost drivers are plotted graphically. Answer: TRUE Diff: 2 Terms: cost estimation, cost function Objective: 4 AACSB: Reflective thinking 25) The most common forms of quantitative analysis are the conference method and the account analysis method. Answer: FALSE Explanation: The most common forms of quantitative analysis are the high-low method and regression analysis. Diff: 1 Terms: conference, account analysis, high-low method; regression analysis Objective: 4 AACSB: Reflective thinking 26) Regressio n analysis relies on only two observations to estimate a linear cost function. Answer: FALSE Explanation: The high-low method relies on only two observations to estimate a linear cost function. Diff: 1 Terms: regression analysis, linear cost function Objective: 4 AACSB: Reflective thinking 27) The yof a linear cost function is an accurate cost assessment of using zero machine -hours, even if zero machine-hours is outside intercept of the relevant range. Answer: FALSE Explanation: The y-intercept of a linear cost function is an accurate cost assessment of using zero machinehours, only if zero machine-hours are within the relevant range. Di...
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This note was uploaded on 12/12/2012 for the course SB 305 taught by Professor Brown during the Spring '08 term at Clarkson University .

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