In determining cost behavior in business,the cost function is often expressed as Y = a + bX.Which one of the following cost estimation methods should not be used in estimating fixed and variable costs for the equation? (CMA adapted)
A)Scattergraph method.
B)Simple regression.
C)High and low point method.
D)Multiple regression.
E)Management analysis of data.

Question

Quizplus · Accepted Answer

Management analysis of data is not a cost estimation method.

In Determining Cost Behavior in Business,the Cost Function Is Often