Question

Select the four approaches to estimating a cost function?

1) Regression analysis
2) High-low method
3) Scatterplot
4) Accounting records

Answer 1

The four approaches to estimating a cost function are regression analysis, high-low method, scatterplot, and accounting records.

Step-by-step explanation:

The four approaches to estimating a cost function are:

1. Regression analysis: This method involves using statistical techniques to find the best fit line that represents the relationship between the independent variable(s) and the cost.
2. High-low method: This method involves comparing the highest and lowest values of the independent variable(s) and their corresponding costs to determine the cost function.
3. Scatterplot: A scatterplot is a graphical representation of the relationship between two variables, where each data point is plotted as a dot on the graph. The data points can help identify trends or patterns in the relationship between the independent variable and the cost.
4. Accounting records: By analyzing accounting records, such as expense reports, income statements, and balance sheets, one can estimate the cost function based on historical data.