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When Evaluating and Choosing Cost Drivers All of the Following

Question 2

Multiple Choice

When evaluating and choosing cost drivers all of the following are true EXCEPT:


A) there is a significance of effect of the independent variable.
B) there is an independent verification of the relationship by a committee of cost accountants.
C) the cost driver is economically plausible.
D) there is a goodness of fit between the various data points and the regression line.

Correct Answer:

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