The relationship between independent variable and dependent variable must be ___________?
Correct answer: B. economically plausible
- A. general ledger
- B. economically plausible
- C. non measureable
- D. non-achievable
Explanation
A cost relationship should be economically plausible, meaning its direction and behavior should make sense in real operations. A mathematically fitted relationship is not useful if it conflicts with business logic.
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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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