Response to the following problem:
One of the techniques used to estimate the new oiler was an analogy to a cargo replenishment ship. Both vessels are replenishment ships. The empty weight of the oiler is 33,000 tons and the cargo ship is 85,000 tons. Since the cargo ship weighs 2.6 times as much as the oiler, the cargo ship cost was divided by 2.6 to arrive at an estimate of the oiler cost.
Given this information, select the best statement below:
-If empty weight is a commonly used cost driver, then this should be a good analogy
-Given the difference in scale, we should question the use of the factor
-Additional data is needed since creating an analogy requires the use of several analogous systems.
-Since the ships are similar in form, fit and function this should be a good analogy