Multiple Choice
Which of the following statements is false regarding cost drivers?
A) A particular cost driver may be used for more than one activity.
B) If employees know the cost driver(s) for their department, it may motivate them to be more efficient.
C) The selection of a cost driver should be based on the correlation it has with direct materials used in the production process.
D) The best cost driver for a particular activity may be different from one company to the next.
Correct Answer:
Verified
Correct Answer:
Verified
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