A cost function:
A) does not explain past cost behavior
B) need not have a cause- and- effect relationship
C) should be a reliable predictor of future costs
D) should include only personal observations of costs and activities

Question

Quizplus · Accepted Answer

A cost function should be a reliable predictor of future costs as it helps in budgeting and planning by estimating how costs will change with different levels of activity.

A Cost Function