In quantitative analysis to estimate cost function, the fourth step is to __________?
Correct answer: D. plot the data
- A. write a liner function
- B. write price function
- C. write manufacturing function
- D. plot the data
Explanation
After collecting the observations, plotting the data helps reveal the relationship between cost and the suspected cost driver before the cost function is estimated. Writing a linear function follows this visual analysis.
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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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