In Which Step of Estimating a Cost Function Using Quantitative

Multiple Choice

In which step of estimating a cost function using quantitative analysis would a manager determine the dependent variable to use in a cost relationship?

A) Step 1: Choose the Dependent Variable.
B) Step 2: Identify the Independent Variable,or Cost Driver.
C) Step 3: Collect Data on the Dependent Variable and the Cost Driver.
D) Step 4: Plot the Data.
E) Step 5: Estimate the Cost Driver of the Estimated Cost Function.