In should-cost modeling, _____ are any components not under the direct control of the buying or supplying company but those that have a significant influence on the outcome being modeled.

Question

Quizplus · Accepted Answer

Assumption variables are external factors that can significantly influence the outcome being modeled in a should-cost analysis. These factors are not under the direct control of either the buyer or seller, but they are essential to consider for accurate cost estimation. Examples of assumption variables could include raw material prices or government regulations.

In Should-Cost Modeling, _____ Are Any Components Not Under the Direct