In quantitative analysis of estimating cost function, the last and foremost step is to _____________?
Correct answer: B. evaluate cost driver
- A. evaluate variable driver
- B. evaluate cost driver
- C. evaluate price 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.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
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.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
The function which is used to measure the decline in per unit cost of different business functions is classified as _____________?
The cause and effect relationship between activity and costs is the result of __________?
To decide whether the cost is variable cost or fixed cost with respect to some specific activity depends upon ___________?
The Regression Analysis Method of quantitative analysis of cost function considers ____________?
In estimation of cost functions, the variations in a single activity level represents the __________?
If an unexplained variation is 456870 and the total variation is 955000, then the coefficient of determination will be ___________?