The fifth step in quantitative analysis of estimating cost function is to ___________?
Correct answer: B. estimate cost function
- A. estimate price function
- B. estimate cost function
- C. estimate supply function
- D. estimate demand function
Explanation
After defining the objective, identifying the cost driver, gathering data, and examining the data, the next step is to estimate the cost function. Price, supply, and demand functions are not the purpose of this procedure.
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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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