The First Step in Estimating a Cost Function for Relevant

question 58

True/False

The first step in estimating a cost function for relevant costs is to select a cost estimation technique.

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Definitions:

Labor

The human effort, whether physical or mental, used in the production of goods and services.

Output

The total amount of goods or services produced by a firm, industry, or economy.

Cost

The total expenditure required to produce a good or service, including materials, labor, and other expenses.

Units

Units refer to the basic measure or quantity of a product, service, or the fundamental quantity used in measurement.