In quantitative analysis of estimating cost function, the last and foremost step is to _____________?
Correct answer: C. evaluate cost driver
- A. evaluate variable driver
- B. evaluate price driver
- C. evaluate cost driver
- D. evaluate demand driver
Explanation
After estimating the cost function, the analyst evaluates the cost driver to determine whether it adequately explains changes in cost. Variable, price, and demand drivers are not the standard final step in this process.
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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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