Vertical difference, which measures distance between estimated and actual cost for every single observation is classified as
A. residual term
B. positive term
C. negative term
D. squared term
Answer: Option A
Solution (By Examveda Team)
Vertical difference, which measures distance between estimated and actual cost for every single observation is classified as residual term.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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