Which of the following are important in estimating the cost of machine maintenance?
A) The relevant range
B) The time period selected
C) The cost driver selected
D) All of the given answers

Question

Quizplus · Accepted Answer

All of the given factors are important in estimating the cost of machine maintenance. The relevant range is important for determining the range of activity levels over which the cost relationship is valid. The time period selected is important for capturing the appropriate amount of maintenance cost for a given period. The cost driver selected is important for accurately allocating maintenance costs to the appropriate cost objects. Therefore, all of the given factors are important and should be considered when estimating the cost of machine maintenance.

Which of the Following Are Important in Estimating the Cost