The main reason for analysing cost behaviour is to
A) provide estimates of cost behaviour.
B) provide estimates for cost predictions.
C) provide a timeframe for analysing cost behaviour.
D) provide estimates of cost behaviour for cost predictions.

Question

Quizplus · Accepted Answer

The main reason for analysing cost behaviour is to provide estimates of cost behaviour which can be used for cost predictions in the future. Therefore, option D is the best choice as it includes both aspects of the main reason for cost behaviour analysis. Options A and B are partially correct but do not account for the main reason for cost behaviour analysis. Option C is incorrect as a timeframe is not the main reason for cost behaviour analysis.

The Main Reason for Analysing Cost Behaviour Is to