Place the following steps in order for estimating a cost function using quantitative analysis.
A = Plot the data
B = Collect data on the dependent variable and the cost driver.
C = Choose the dependent variable
D = Identify the independent variable, or cost driver
E = Estimate the cost function
A) D C E A B
B) C D B A E
C) A D C E B
D) E D C B A

Question

Quizplus · Accepted Answer

The first step is to choose the dependent variable (C). Then, we need to identify the independent variable or cost driver (D). After that, we can collect data on the dependent variable and the cost driver (B) and plot the data (A). Finally, we estimate the cost function (E) using quantitative analysis. Therefore, the correct order is C D B A E, which corresponds to option B.

Place the Following Steps in Order for Estimating a Cost