A Cost Driver Should Be Measurable and Have an Economically

Multiple Choice

A cost driver should be measurable and have an economically plausible relationship with the dependent variable which means:

A) that the cost driver can be identified in an economically feasible way
B) that the relationship is based on correlation
C) that the relationship is based on a cause -and-effect criterion and makes economic sense to management
D) that the relationship must be based on a physical relationship