Thursday, June 23, 2011

Which of the following statements related to assumptions about estimating linear cost functions is FALSE?

ACCOUNTING

Multiple Choice

Which of the following statements related to assumptions about estimating linear cost functions is FALSE?

a. Variations in a single cost driver explain variations in total costs

b. A cost object is anything for which a separate measurement of costs is desired

c. A linear function approximates cost behavior within the relevant range of the cost driver

d. A high correlation between two variables ensures that a cause-and-effect relationship exists

Click here for the SOLUTION

No comments:

Post a Comment