Q421
Strength of relationship between cost driver and cost is considered as
A.
badness of residual
B.
goodness of residual
C.
badness of fit
D.
goodness of fit
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Strength of relationship between cost driver and cost is considered as goodness of fit. Goodness of fit measures the degree of association between cost and activity.