Which of the following methods of estimating costs is most useful when input/output relationships are well defined and fairly stable over time.
A)Engineering method
B)Account analysis
C)Visual curve-fitting
D)Regression

Question

Quizplus · Accepted Answer

The engineering method is the most useful when input/output relationships are well-defined and stable over time as it uses a detailed analysis of the components of a project, including labor, materials, and overhead, to estimate costs. It is based on a thorough understanding of the technology involved and applies past experience to estimate costs for new projects. This method is particularly useful for manufacturing and construction industries where there is a clear understanding of the production process and the costs involved in each step.

Which of the Following Methods of Estimating Costs Is Most