The development of accurate cost-estimating equations requires the matching of the activity to:
A) Changes in technology and prices
B) Production
C) Related costs within each observation
D) All of the above

Question

Quizplus · Accepted Answer

The first requirement in estimating future costs is collecting accurate data regarding past activity. It is crucial that accurate costs for past activity levels are determined; otherwise, the cost estimation equation will not be reliable.

The Development of Accurate Cost-Estimating Equations Requires the Matching of the Activity