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Commerce · Q418

Costing

Graduate and Post Graduate · Commerce · question 418

Q418

Vertical difference, which measures distance between estimated and actual cost for every single observation is classified as

A.
residual term
Answer
B.
positive term
C.
negative term
D.
squared term

Answer: Option A

Solution

Answer: Option A
Solution:
Vertical difference, which measures distance between estimated and actual cost for every single observation is classified as residual term.