Cause and effect relationship between activity and costs is result of
A. contractual agreement
B. knowledge of operations
C. measureable unit relationship
D. all of above
Answer: Option D
Solution(By Examveda Team)
Cause and effect relationship between activity and costs is result of contractual agreement, knowledge of operations and measureable unit relationship.Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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