Strength of relationship between cost driver and cost is considered as
A. badness of residual
B. goodness of residual
C. badness of fit
D. goodness of fit
Answer: Option D
Solution(By Examveda Team)
Strength of relationship between cost driver and cost is considered as goodness of fit. Goodness of fit measures the degree of association between cost and activity.Related Questions on Costing
If residual error is 25 and predicted cost value is 50, then observed cost value would be
A. 100
B. 25
C. 50
D. 75
Second step in processing costing system is to
A. summarize total costs
B. compute cost for each equivalent unit
C. summarize flow of output
D. compute output in units
A. $40,000
B. $154,000
C. $164,000
D. $124,000
A. 3
B. 0.5003
C. 0.7003
D. 2
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