Which methods to approximate cost functions rely on a logical analysis of the cost environment instead of an explicit analysis of prior cost data?
A) engineering analysis; account analysis
B) activity analysis; account analysis
C) visual fit method; high low method
D) least-squares regression analysis; activity analysis

Question

Quizplus · Accepted Answer

Engineering analysis and activity analysis rely on logical analysis of the cost environment instead of prior cost data, while account analysis, visual fit method, and least-squares regression analysis use prior cost data to estimate the cost function. The high low method uses both prior cost data and a logical analysis of the cost environment.

Which Methods to Approximate Cost Functions Rely on a Logical