Place the six cost estimation steps into the correct order:

1. Determine the cost drivers
2. Graph the data
3. Select and employ the appropriate estimation method
4. Define the cost object for which the related costs are to be estimated
5. Evaluate the accuracy of the cost estimate
6. Collect consistent and accurate data on the cost object and the cost drivers
A) 6,4,1,3,5,2.
B) 4,1,6,2,3,5.
C) 2,1,4,3,6,5.
D) 1,3,4,6,5,2.

Question

Place the six cost estimation steps into the correct order:

1. Determine the cost drivers 
2. Graph the data 
3. Select and employ the appropriate estimation method 
4. Define the cost object for which the related costs are to be estimated 
5. Evaluate the accuracy of the cost estimate 
6. Collect consistent and accurate data on the cost object and the cost drivers 
A) 6,4,1,3,5,2.
B) 4,1,6,2,3,5.
C) 2,1,4,3,6,5.
D) 1,3,4,6,5,2.

Quizplus · Accepted Answer

The correct order of the six cost estimation steps is: 
1. Define the cost object for which the related costs are to be estimated 
2. Determine the cost drivers 
3. Collect consistent and accurate data on the cost object and the cost drivers 
4. Select and employ the appropriate estimation method 
5. Evaluate the accuracy of the cost estimate 
6. Graph the data 
Therefore, the correct choice is B.

Place the Six Cost Estimation Steps into the Correct Order