The correct answer is: B. Inference method
An inference method is a method of estimating a cost function by making opinions and analysis about cost and cost drivers. This method is based on the assumption that the cost of a product or service can be estimated by understanding the factors that drive the cost. These factors can include the cost of materials, labor, overhead, and other expenses.
The inference method is a relatively simple and straightforward method of estimating a cost function. However, it is important to note that this method is based on assumptions about the cost drivers. If these assumptions are incorrect, the estimated cost function may be inaccurate.
The other options are incorrect because they do not describe a method of estimating a cost function by making opinions and analysis about cost and cost drivers.
- Option A, conference method, is a method of estimating a cost function by gathering opinions from a group of experts.
- Option C, pricing method, is a method of estimating a cost function by setting prices for products or services.
- Option D, manufacturing method, is a method of estimating a cost function by analyzing the manufacturing process.