If the coefficients are similar for two accounting periods, then single cost relationship is estimated with the help of ___________?
Correct answer: C. pool of data
- A. data of fixed cost
- B. cost driver of data
- C. pool of data
- D. cost object of data
Explanation
When the cost relationship remains stable across periods, observations from those periods are combined into a pool of data to estimate one relationship. Fixed costs and cost objects are components of the analysis, not the data pool itself.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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