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40.      Each cost in a manufacturing operation must be either fixed or variable.
     
41.      Least-squares regression is the easiest method to approximate a cost function.
     
42.      The visual-fit method is more objective than the engineering analysis method.
     
43.     Least-squares regression is a reliable method of cost estimation.
     
44.      The visual fit method is highly subjective and is more reliable when the cost function of the data is linear.
     
45.     In a regression analysis, the constant is a measure of reliability.
     
46.     Least-squares regression measures a cost function more objectively (with statistics rather than human eyesight) using the same data.
     

47.     A lower coefficient of determination is better than a higher one.
     

48.     When performing an engineering analysis, one must be careful because the observed time period may be abnormal.
     
49.     An engineering cost analysis is often not timely.
     
50.     During an engineering cost analysis, knowledge about new costs may be obtained from experiments with prototypes and the experience of competitors.
     
51.     The account analysis method of measuring cost behavior is objective.
     
52.     The high-low method of measuring cost behavior uses estimated costs.
     
53.     A concern with using historical data to measure cost behavior is the possibility that historical data may hide past inefficiencies that the company could reduce if it could identify them.
     
54.     The visual-fit method of measuring cost behavior only uses two points of data.
     
55.     If regression analysis is used when measuring cost behavior, plotting the cost against each of the potential cost drivers is not necessary.
     
56.     In a cost function equation, the cost to be explained is the independent variable.
     
57.     In regression analysis, the fixed-cost measure is labeled the constant or intercept.
     

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