The method of estimating long-run costs in which knowledgeable professionals familiar with production facilities and processes calculate optimal combination of inputs to produce given quantities and then estimate costs is known as
A)engineering cost estimating.
B)the survivorship method.
C)regression analysis.
D)None of the above

Question

Quizplus · Accepted Answer

Engineering cost estimating involves input from professionals who understand production facilities and processes, making it a suitable method for estimating long-run costs. The survivorship method is used to estimate industry failure rates and is not relevant to cost estimation. Regression analysis is a statistical method that may be useful for certain types of cost estimation, but it is not the primary method used for estimating long-run costs.

The Method of Estimating Long-Run Costs in Which Knowledgeable Professionals