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.
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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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