In adjustment issues of costing, the database must consider wide range values of __________?
Correct answer: B. cost driver
- A. fixed object
- B. cost driver
- C. cost object
- D. mixed object
Explanation
A costing database should include a broad range of cost-driver values because cost behavior is analyzed in relation to the activity that causes the cost. A fixed or mixed object is not the activity measure used for this purpose.
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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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