A Cost Function

question 33

Multiple Choice

A cost function

• A) need not have a cause-and-effect relationship.
• B) should include only personal observations of costs and activities.
• C) does not explain past cost behaviour.
• D) should be a reliable predictor of future costs.

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Definitions:

Credit

An accounting entry that either increases a liability or equity account, or decreases an asset or expense account.

Internal Report

Documents generated within an organization for the purpose of informing internal stakeholders about business performance and operations.

Debit Balances

Financial account balances resulting from total debits exceeding total credits, common in asset and expense accounts.

Credit Balances

Amounts of money in financial accounts that indicates the institution owes the account holder; in accounting, it can indicate a surplus in a particular account.