The cost analysis method, which uses mathematical method to use fit between past data observations and cost functions is termed as ___________?
Correct answer: D. quantitative analysis method
- A. conference analysis method
- B. qualitative analysis method
- C. account analysis method
- D. quantitative analysis method
Explanation
Quantitative analysis uses mathematical or statistical techniques to fit past observations to a cost function. Account analysis and conference analysis rely more on judgement and classification.
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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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