Chapter 10 introduces cost estimation methods. Managers use cost estimation to measure relationships based on previous costs incurred for the same production activity levels.

On pages 376-379, four basic cost estimation methods are introduced:

Industrial Engineering Method

Conference Method

Account Analysis Method

Quantitative Analysis Method

Please respond to all of the following prompts:

Choose one of these four methods to discuss in detail. In your main response posting, be sure to address the following elements for the method chosen:

Important information provided

Assumptions used

Advantages and/or disadvantages associated with the method