Which costing method is described as being driven by expert rounds to reach consensus?

Which costing method is described as being driven by expert rounds to reach consensus?

• A. Direct Labor Costing
• B. Weighted Average
• C. Delphi
• D. Top-Down

Answer: (C)

This question tests the Delphi technique, a structured approach to reaching consensus among experts through multiple rounds of input. In this method, a panel of experts provides estimates anonymously, then receives a summary of the group’s responses and rationale, and is asked to reconsider their views in light of the collective feedback. This cycle repeats until the estimates converge toward agreement. That emphasis on repeated rounds of expert input to build a consensus is what makes this method the best fit. Other costing approaches don’t rely on iterative expert consensus: Direct labor costing focuses on tracing costs to labor, weighted average combines data points with assigned weights, and top-down estimates come from high-level judgment allocated downward rather than through professional rounds aimed at consensus.

This question tests the Delphi technique, a structured approach to reaching consensus among experts through multiple rounds of input. In this method, a panel of experts provides estimates anonymously, then receives a summary of the group’s responses and rationale, and is asked to reconsider their views in light of the collective feedback. This cycle repeats until the estimates converge toward agreement. That emphasis on repeated rounds of expert input to build a consensus is what makes this method the best fit. Other costing approaches don’t rely on iterative expert consensus: Direct labor costing focuses on tracing costs to labor, weighted average combines data points with assigned weights, and top-down estimates come from high-level judgment allocated downward rather than through professional rounds aimed at consensus.