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Commerce · Q462

Costing

Graduate and Post Graduate · Commerce · question 462

Q462

In quantitative analysis of estimating cost function, last and foremost step is to

A.
evaluate variable driver
B.
evaluate cost driver
Answer
C.
evaluate price driver
D.
evaluate demand driver

Answer: Option B

Solution

Answer: Option B
Solution:
In quantitative analysis of estimating cost function, last and foremost step is to evaluate evaluate cost driver. A cost driver is the unit of an activity that causes the change in activity's cost.