{"id":59409,"date":"2024-04-16T01:36:40","date_gmt":"2024-04-16T01:36:40","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=59409"},"modified":"2024-04-16T01:36:40","modified_gmt":"2024-04-16T01:36:40","slug":"type-of-relationship-stating-how-changes-in-cost-driver-drives-cause-changes-in-cost-will-be-termed-as","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/type-of-relationship-stating-how-changes-in-cost-driver-drives-cause-changes-in-cost-will-be-termed-as\/","title":{"rendered":"Type of relationship stating &#8220;how changes in cost driver drives cause changes in cost&#8221; will be termed as"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;marginal plausibility&#8221; option2=&#8221;economic plausibility&#8221; option3=&#8221;financial plausibility&#8221; option4=&#8221;market plausibility&#8221; correct=&#8221;option1&#8243;]<!--more--><\/p>\n<p>The correct answer is: A. marginal plausibility.<\/p>\n<p>Marginal plausibility is a type of relationship that states how changes in a cost driver cause changes in cost. It is a measure of the sensitivity of costs to changes in the level of activity.<\/p>\n<p>For example, if the cost of a product is $10 and the cost driver is the number of units produced, then the marginal cost of producing one unit is $10. This means that if the company produces one more unit, the cost of production will increase by $10.<\/p>\n<p>Marginal plausibility is important because it can be used to estimate the impact of changes in activity on costs. This information can be used to make decisions about pricing, production levels, and other aspects of business operations.<\/p>\n<p>The other options are incorrect because they do not accurately describe the type of relationship stated in the question.<\/p>\n<ul>\n<li>Economic plausibility is a measure of the likelihood that a particular economic event will occur.<\/li>\n<li>Financial plausibility is a measure of the likelihood that a particular financial event will occur.<\/li>\n<li>Market plausibility is a measure of the likelihood that a particular market event will occur.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;marginal plausibility&#8221; option2=&#8221;economic plausibility&#8221; option3=&#8221;financial plausibility&#8221; option4=&#8221;market plausibility&#8221; correct=&#8221;option1&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-59409","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Type of relationship stating &quot;how changes in cost driver drives cause changes in cost&quot; 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