Cost-estimating relationships (CER) have been defined that allow design variables (like speed, horsepower, and size) to predict costs: C2 = C1(Q2/Q1)* Question: To successfully use this type of Cost-estimating relationship to estimate the cost of a similar piece of equipment, C2, which of the following must be true? O You need to know the size / capacity and the cost of a similar piece of equipment. O You need the CER correlating exponent value O The Size Range for the CER must include the size of the equipment you have the cost value for and the size of the equipment who's cost you want to estimate. O You must find a source that publishes correlating exponent values for the type of equipment you are interested in.

Cost-estimating relationships (CER) have been defined that allow design variables (like speed, horsepower, and size) to predict costs: C2 = C1(Q2/Q1)* Question: To successfully use this type of Cost-estimating relationship to estimate the cost of a similar piece of equipment, C2, which of the following must be true? O You need to know the size / capacity and the cost of a similar piece of equipment. O You need the CER correlating exponent value O The Size Range for the CER must include the size of the equipment you have the cost value for and the size of the equipment who's cost you want to estimate. O You must find a source that publishes correlating exponent values for the type of equipment you are interested in.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Management by Exception

A manager’s job is a very tough one. A manager needs to look at the various areas of work and as a manager he has to look after two or more important jobs or activities at the same time for the growth of the business. In order to do all these things in an effective manner, a manager must adopt or practice different management styles and tactics.

Question

Cost-estimating relationships (CER) have been defined that allow design variables (like speed, horsepower, and size) to predict costs:
C2 = C(Q2/Q1)*
Question: To successfully use this type of Cost-estimating relationship to estimate the cost of a similar piece of equipment, C2, which of the following must be
true?
O You need to know the size // capacity and the cost of a similar piece of equipment.
O You need the CER correlating exponent value
O The Size Range for the CER must include the size of the equipment you have the cost value for and the size of the equipment who's cost you want to estimate.
O You must find a source that publishes correlating exponent values for the type of equipment you are interested in.
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