A company has identified the appropriate cost driver for a resource cost.To estimate or approximate the cost function,the company manager has a broad selection of methods that will NOT include ________.
A) least squares regression analysis
B) activity analysis
C) high-low method
D) engineering method

Question

Quizplus · Accepted Answer

Activity analysis is not a method used to estimate or approximate the cost function; it is used to identify activities and assign costs to them based on their use of resources. Least squares regression analysis, high-low method, and engineering method are all techniques used to estimate cost functions based on the relationship between costs and their drivers.

A Company Has Identified the Appropriate Cost Driver for a Resource