In which step of estimating a cost function using quantitative analysis would a manager estimate a cost function with the high-low method,or regression analysis?
A)Step 1: Choose the Dependent Variable
B)Step 2: Identify the Independent Variable,or Cost Driver.
C)Step 3: Collect Data of the Dependent Variable of the Cost Driver.
D)Step 4: Plot the Data.
E)Step 5: Estimate the Cost Driver of the Estimated Cost Function.

Question

Quizplus · Accepted Answer

Estimating the cost function, whether through the high-low method or regression analysis, is done after identifying the dependent and independent variables, collecting data, and plotting the data. This step involves analyzing the data to establish the relationship between the cost driver and the costs, which is essentially estimating the cost function.

In Which Step of Estimating a Cost Function Using Quantitative