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Commerce · Q440

Costing

Graduate and Post Graduate · Commerce · question 440

Q440

If residual error is 25 and predicted cost value is 50, then observed cost value would be

A.
100
B.
25
C.
50
D.
75
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Observed cost value = Predicted cost value + Residual error
= 50 + 25 = 75