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.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 12E: For the following activities and their associated resources, identify the following: (1) a cost...

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