A Cost Driver Is

question 4

Multiple Choice

A cost driver is

• A)any factor or activity that has a direct cause-effect relationship with the resources consumed.
• B)always based on time consumed by the activity.
• C)another name for cost pool.
• D)a term used only in traditional costing systems.

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Definitions:

Pollution Permits

Government-issued licenses allowing the holder to emit a certain amount of pollutants into the environment.

Chicago Board

Typically signifies the Chicago Board of Trade (CBOT) or Chicago Board Options Exchange (CBOE), prominent platforms for trading commodities and options respectively.

Economic System

Represents the method employed by societies to allocate resources, produce goods and services, and distribute them amongst its members.

Allocated Efficiently

refers to the optimal distribution of resources so that it maximizes the net benefit received from their use.