The relationship based on unrelated level of activity and past data of cost is measured with the help of __________?

Correct answer: A. cost estimation

  • A. cost estimation
  • B. price estimation
  • C. unit estimation
  • D. production estimation

Explanation

Cost estimation uses past cost information and activity levels to measure or predict the relationship between cost and the cost driver. Price, unit, and production estimation do not describe this general process.

Written and checked by , editorLast updated
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