Question

Which of the following is not an important factor in determining the appropriate cost driver to use in allocating a cost?

Accepted Answer

A)  A cause-and-effect relationship between the cost and the cost driver 
B)  The availability of information about the cost and cost driver 
C)  The ability of the cost driver to allocate indirect costs to cost objects 
D)  All of these are important factors in determining the appropriate cost driver to use in allocating a cost 
A)  A cause-and-effect relationship between the cost and the cost driver 
B)  The availability of information about the cost and cost driver 
C)  The ability of the cost driver to allocate indirect costs to cost objects 
D)  All of these are important factors in determining the appropriate cost driver to use in allocating a cost

Which of the following is not an important factor in determining the appropriate cost driver to use in allocating a cost?

An Introduction to Accounting

Accounting for Accruals and Deferrals

Accounting for Merchandising Businesses

Internal Controls, Accounting for Cash, and Ethics

Accounting for Receivables and Inventory Cost Flow

Accounting for Long-Term Operational Assets

Accounting for Liabilities

Proprietorships, Partnerships, and Corporations

Financial Statement Analysis

An Introduction to Management Accounting

Cost Behavior, Operating Leverage, and Profitability Analysis

Relevant Information for Special Decisions

Planning for Profit and Cost Control

Performance Evaluation

Planning for Capital Investments

Filters

Exam 12: Cost Accumulation, Tracing, and Allocation

Which of the following is not an important factor in determining the appropriate cost driver to use in allocating a cost?

An Introduction to Accounting

Accounting for Accruals and Deferrals

Accounting for Merchandising Businesses

Internal Controls, Accounting for Cash, and Ethics

Accounting for Receivables and Inventory Cost Flow

Accounting for Long-Term Operational Assets

Accounting for Liabilities

Proprietorships, Partnerships, and Corporations

Financial Statement Analysis

An Introduction to Management Accounting

Cost Behavior, Operating Leverage, and Profitability Analysis

Relevant Information for Special Decisions

Planning for Profit and Cost Control

Performance Evaluation

Planning for Capital Investments

Filters