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.

This Question Belongs to Commerce >> Costing

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