A Good Cost Driver Should Have a High Correlation with

question 41

Multiple Choice

A good cost driver should have a high correlation with

• A)the actual number of units produced.
• B)the actual consumption of overhead costs.
• C)the actual number of products produced.
• D)the actual consumption of direct costs.

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Definitions:

Objectivity

The practice of being unbiased, unprejudiced, and impartial, especially in analysis, reporting, or decision-making.

Characteristic

A feature or quality that distinguishes an individual, group, or thing from others.

Incoming Messages

Messages that are received by a device or individual, as opposed to those being sent out.

Negative Performance Evaluation

An assessment that indicates an employee's work performance does not meet expected standards.