Effectiveness of Cost Model Data Set
Effectiveness of Cost Model Data Set is as follows:
- Objectivity: The cost modeling dataset authenticates the importance of business objectives. Moreover, the business objectives are verifiable as independent documentary evidence. For example-invoice statements, cheque receipt and voucher,
- Simplicity: Cost model dataset is the simplest among the cost data analytical models. It provides current reports on asset valuation without taking any external help from the current continually changing market. It calculates annual depreciation without evaluating the constantly changing asset value. For example- cost estimation and cost prediction.
- Conservative: The cost model dataset does not include any account or asset in the dataset that is not verified and authentically proven according to the current market sale. Creative accounting can be a significant example of the conservative approach of this model.
- Consistency: Maintenance of flexibility is a significant feature of the cost model dataset. It evaluates the financial consistency of a business and makes predictions about the most expected future.