An analyst was developing a cost factor to estimate

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An analyst was developing a cost factor to estimate non-recurring tooling as a function of the recurring tooling cost. If the factor was constructed as:

Nonrecurring Tooling Cost
--------------------------------------
Total (Recurring + Nonrecurring) Tooling Cost

The mistake was:

A) Recurring tooling would not be a good cost driver

B) You can't have a factor with a cost-to-cost relationship

C) The total cost should be in the numerator

D) Nonrecurring costs were included in the denominator

Reference no: EM13367888

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