Relationship between cost and cost driver is economically plausible if goodness of fit

A. has meaning

B. has no meaning

C. has index values

D. has no index values

Answer: Option A

Solution(By Examveda Team)

Relationship between cost and cost driver is economically plausible if goodness of fit has meaning. The goodness of fit test is a statistical hypothesis test to see how well sample data fit a distribution from a population with a normal distribution. In other words, it tells you if your sample data represents the data you would expect to find in the actual population.