The First Step in Conducting a Cost Analysis Is To

question 34

Multiple Choice

The first step in conducting a cost analysis is to:

• A) Determine whether to use a full-cost or a contribution-margin approach
• B) Allocate natural costs to functional cost centers
• C) Break costs of revenues into relatively large blocks so that little meaning is lost within each block
• D) Determine which segment of the population most needs to be analyzed
• E) Specify the purpose for which the study is being done

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