The third step in estimation of cost function, by using quantitative analysis is collection of data for ___________?
Correct answer: C. dependent variable and cost driver
- A. cost and cost object
- B. price and cost driver
- C. dependent variable and cost driver
- D. independent variable and cost driver
Explanation
Quantitative cost-function analysis requires paired observations of the dependent variable, usually cost, and the independent variable, usually a cost driver. This data allows the relationship between activity and cost to be estimated.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
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.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
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
In a given scenario, if the cost is considered as indirect cost then independent variable will be considered as _________?
If the difference in costs is $9000 and the difference in machine hours is $15000, then slope coefficient would be ___________?
If the difference between costs linked to highest and lowest observation of cost driver is $27000 and observation of cost driver is 90 machine hours, then slope coefficient would be ____________?
The formula of 1 - unexplained variation ⁄ total variation is used to calculate _____________?
The cost that has elements of variable and fixed costs at the same time is __________?
If the difference in costs is $32000 and the slope coefficient is 0.40, then difference in machine hours would be ___________?