The relationship between cost and cost drivers is _________?
Correct answer: B. not stationary
- A. stationary
- B. not stationary
- C. intrinsic
- D. extrinsic
Explanation
The cost-driver relationship is not stationary because technology, prices, efficiency and operating conditions can change over time. Therefore, a historical relationship may not remain constant.
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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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