After completing this chapter, you should be able to: | 6-1 | Explain the relationships between cost estimation, cost behavior, and cost prediction. | | 6-2 | Define and describe the behavior of the following types of costs: variable, step-variable, fixed, step-fixed, semivariable (or mixed), and curvilinear. | | 6-3 | Explain the importance of the relevant range in using a cost behavior pattern for cost prediction. | | 6-4 | Define and give examples of engineered costs, committed costs, and discretionary costs. | | 6-5 | Describe and use the following cost estimation methods: account classification, visual fit, high-low, and least-squares regression. | | 6-6 | Describe the multiple regression, engineering, and learning-curve approaches to cost estimation. | | 6-7 | Describe some problems often encountered in collecting data for cost estimation. | | 6-8 | Perform and interpret a least-squares regression analysis with a single independent variable (appendix). |
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