In adjustment issues of costing, the database must contain reliable measure of __________?
Correct answer: B. cost driver and cost
- A. fixed cost driver
- B. cost driver and cost
- C. cost driver and object
- D. mixed cost driver
Explanation
Reliable cost estimation requires data showing both the cost driver and the related cost. Without both measures, the effect of activity on cost cannot be assessed properly.
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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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