The process of identifying appropriate cost drivers and their effects on the costs of making a product or providing a service is called _____.
A)cost prediction
B)cost measurement
C)activity analysis
D)budgeting

Question

Quizplus · Accepted Answer

The process described in the question is activity analysis, which involves identifying activities (or cost drivers) that affect the costs of making a product or providing a service. Cost prediction and measurement may be part of activity analysis, but they are not the primary focus. Budgeting may also involve identifying cost drivers but is a broader process that involves setting financial goals and allocating resources.

The Process of Identifying Appropriate Cost Drivers and Their Effects