In adjustment issues and data collection, the inflation affects the _________?
Correct answer: A. cost driver and cost
- A. cost driver and cost
- B. cost object and cost
- C. heterogeneous cost
- D. homogenous cost
Explanation
Inflation can change both the cost driver data and the recorded costs over time, making historical relationships unreliable unless adjusted. This is why cost and driver observations must be considered together.
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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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