Which of the following statements is true concerning cost estimation methods?
A) Cost behaviour is always assumed to depend on more than one cost driver.
B) Cost behaviour patterns are curvilinear.
C) Costs and benefits of using sophisticated and costly cost-estimation methods must be evaluated.
D) Cost behaviour is always assumed to depend on more than one cost driver AND costs and benefits of using sophisticated and costly cost-estimation methods must be evaluated.

Question

Quizplus · Accepted Answer

Cost estimation methods vary in complexity and accuracy, and it's important to weigh the costs and benefits of using more sophisticated and potentially costly methods against simpler ones. This ensures that the chosen method is cost-effective for the specific needs of the analysis.

Which of the Following Statements Is True Concerning Cost Estimation