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.
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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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