Assuming that a cost is mixed and linear, and that past cost behaviour is expected to continue into the future, which of the following is mostly likely the best technique for estimating future costs?
A) Regression analysis
B) Two-point method
C) Scatter plot
D) Engineered estimate of cost

Question

Quizplus · Accepted Answer

Regression analysis is the most comprehensive method for estimating future costs when dealing with mixed and linear costs, as it statistically analyzes past cost behavior to predict future costs, taking into account both fixed and variable components.

Assuming That a Cost Is Mixed and Linear, and That