Which quantitative cost estimation technique uses all historical data points to estimate fixed and variable cost components via mathematical regression?
ALeast-Squares Regression Method
BScattergraph Method
CHigh-Low Method
DAccount Analysis Method
Explanation
* Least-Squares Regression mathematically minimizes the sum of squared vertical deviations to fit a cost estimation line (Y = a + bX).
* Superior accuracy compared to the High-Low method which relies on only two extreme data points.
* Provides statistical evaluation metrics like R-squared.
Exam Relevance
- Topic: Cost Accounting
- Subtopic: Cost Estimation

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