Multiple Choice
Which of the following statements is true of choosing cost drivers under activity-based costing?
A) All the cost drivers should be unit-level cost drivers.
B) There should be a clear cause-and-effect relationship between cost drivers and cost pools.
C) Cost drivers are independent variables.
D) A single cost driver should be identified for all the activities.
Correct Answer:
Verified
Correct Answer:
Verified
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