A manager is trying to estimate the manufacturing costs of a new product.The company makes several other products that utilize some of the same manufacturing procedures as the new product.Which cost estimation method would be the best method to determine the total cost of manufacturing the new product?
A)engineering estimates
B)regression analysis
C)account analysis
D)scattergraph
E)high-low

Question

Quizplus · Accepted Answer

Since the company already makes other products using some of the same manufacturing procedures, it may be possible to estimate the costs of manufacturing the new product by using engineering estimates. This involves breaking down the manufacturing process into individual components and estimating the cost of each component. Since the company has experience with the manufacturing procedures used in the new product, they may be able to estimate the costs fairly accurately using this method. Regression analysis, account analysis, scattergraph, and high-low methods may not be as effective in this situation, as they may not take into account the specific manufacturing procedures used in the new product.

A Manager Is Trying to Estimate the Manufacturing Costs of a New