Which of the following statements is of true engineered costs?
A) They arise from periodic (usually annual) decisions regarding the maximum amount to be incurred.
B) They have a detailed, physically observable, and repetitive relationship with output.
C) They include advertising, executive training, and R&D.
D) They have high level of uncertainty.

Question

Quizplus · Accepted Answer

Engineered costs have a direct and observable relationship with output and can be accurately predicted based on production levels. Options A, C, and D do not accurately describe engineered costs.

Which of the Following Statements Is of True Engineered Costs