Type of relationship stating "how changes in cost driver drives cause changes in cost" will be termed as
A. marginal plausibility
B. economic plausibility
C. financial plausibility
D. market plausibility
Answer: Option B
Solution(By Examveda Team)
Type of relationship stating "how changes in cost driver drives cause changes in cost" will be termed as economic plausibility. There is a positive relationship between the number of service reports (a cost driver) and the customer- service department costs.Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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