Chapter 5

Question 1

Cost estimate based on measurement and pricing of the work involved in a task.

Answer 1

engineering estimates

Question 2

Cost estimation method that calls for a review of each account making up the total cost being analyzed.

Answer 2

account analysis

Question 2

Activity levels within which a given total fixed cost or unit variable cost will be unchanged.

Answer 2

relevant range

Question 3

Graph that plots costs against activity levels.

Answer 3

scattergraph

Question 4

Method to estimate costs based on two cost observations, usually at the highest and lowest activity levels.

Answer 4

high-low cost estimation

Question 5

Statistical procedure to determine the relation between variables.

Answer 5

Regression

Question 6

on the right-hand side of a regression equation.

Answer 6

independent variable, X term, or predictor

Question 7

on the left-hand side of a regression equation.

Answer 7

dependent variable ,Y term

Question 8

Measure of the linear relation between two or more variables, such as cost and some measure of activity.

Answer 8

correlation coefficient

Question 9

Square of the correlation coefficient, interpreted as the proportion of the variation in the dependent variable explained by the independent variable(s).

Answer 9

coefficient of determination

Question 10

Correlation coefficient squared and adjusted for the number of independent variables used to make the estimate.

Answer 10

adjusted R-squared (R2)

Question 11

t is the value of the estimated coefficient, b, divided by its standard error.

Answer 11

t-statistic

Question 12

Systematic relationship between the amount of experience in performing a task and the time required to perform it.

Answer 12

learning phenomenon