Examveda
Examveda

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.

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