Which of the Following Statements Is True Concerning Cost Estimation

question 48

Multiple Choice

Which of the following statements is true concerning cost estimation methods?

• A) Cost behaviour is always assumed to depend on more than one cost driver.
• B) Cost behaviour patterns are curvilinear.
• C) Costs and benefits of using sophisticated and costly cost-estimation methods must be evaluated.
• D) Cost behaviour is always assumed to depend on more than one cost driver AND costs and benefits of using sophisticated and costly cost-estimation methods must be evaluated.

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Definitions:

Business Inventories

The stocks of goods and materials that firms hold for the purpose of sale or input into production, often used to meet consumer demand or continue production.

Welfare Benefits

Financial assistance provided by the government to individuals or groups in need, aiming to support well-being and economic stability.

Stocks And Bonds

Stocks and bonds are financial instruments; stocks represent ownership shares in a company, while bonds are debt securities issued by entities like governments or corporations to raise capital.

Gross Domestic Product

The total market value of all final goods and services produced within a country in a given period, used as a broad measure of economic activity.