Which of the following five steps (out of six) of cost estimation is out of order?
A) Step 1: Define the cost object to be estimated.
B) Step 2: Determine the cost driver(s).
C) Step 3: Collect relevant data on the cost of the cost object and the cost driver.
D) Step 4: Evaluate the accuracy of the cost estimate.
E) Step 5: Select and employ the estimation method.

Question

Quizplus · Accepted Answer

Step 4 (Evaluate the accuracy of the cost estimate) is out of order because it should come after Step 5 (Select and employ the estimation method). You need to select and use an estimation method before you can evaluate the accuracy of the cost estimate.

Which of the Following Five Steps (Out of Six) of Cost