# 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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