The purpose of cost analysis is to arrive at a price that is fair and reasonable to both the buying and selling firms.

Question

Quizplus · Accepted Answer

Cost analysis is a critical tool in determining price, which is fair and reasonable for both the buying and selling firms. The primary objective of cost analysis is to establish value for money based on the costs of production, estimated overheads, and the desired profit margin. Therefore, the answer is true.

The Purpose of Cost Analysis Is to Arrive at a Price