Asked by
Jizzy Singh
on Oct 24, 2024
Verified
Which of the following statements is true concerning cost estimation methods?
A) Cost behaviour is always assumed to depend on more than one cost driver.
B) Cost behaviour patterns are curvilinear.
C) Costs and benefits of using sophisticated and costly cost-estimation methods must be evaluated.
D) Cost behaviour is always assumed to depend on more than one cost driver AND costs and benefits of using sophisticated and costly cost-estimation methods must be evaluated.
Cost Estimation Methods
Techniques used to predict the costs associated with the production of a product, project, or operation.
Cost Behaviour
The way in which costs change in relation to variations in an organization's activity level or volume of output.
Sophisticated Methods
Advanced or complicated techniques and approaches used in various fields to solve problems or achieve objectives.
- Absorb the variety of frameworks for assessing costs and their operational contexts.
- Review the variables that play a role in determining a cost driver within cost estimation processes.
Verified Answer
SS
Learning Objectives
- Absorb the variety of frameworks for assessing costs and their operational contexts.
- Review the variables that play a role in determining a cost driver within cost estimation processes.