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Commerce · Q443

Costing

Graduate and Post Graduate · Commerce · question 443

Q443

Relationship between independent variable and dependent variable must be

A.
general ledger
B.
non-achievable
C.
non measureable
D.
economically plausible
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Relationship between independent variable and dependent variable must be economically plausible. The cost function shows a positive economically plausible relationship between machine-hours and maintenance costs.