Which of the following cost estimation techniques makes assumptions about the data being analysed?
I Analysis at the account level
II High low method
III Regression analysis
A) I only
B) I and II only
C) II and III only
D) I, II, and III

Question

Which of the following cost estimation techniques makes assumptions about the data being analysed?
 I Analysis at the account level
II High low method
III Regression analysis
A) I only
B) I and II only
C) II and III only
D) I, II, and III

Quizplus · Accepted Answer

All three techniques make assumptions about the data being analyzed. Analysis at the account level assumes costs can be categorized in a meaningful way for analysis. The high-low method assumes the relationship between cost and activity is linear within the relevant range. Regression analysis assumes the relationship between variables can be represented by a linear equation, among other assumptions about the data.

Which of the Following Cost Estimation Techniques Makes Assumptions About