What Is the Primary Trade-Off That an Accountant Must Consider

question 98

Multiple Choice

What is the primary trade-off that an accountant must consider when deciding whether to identify cost drivers?

• A) Will the cost driver identification provide different costs for different purposes?
• B) Is the cost/benefit of the process reasonable for more accurate cost behavior obtained?
• C) Will the cost relationships be too complex to understand?
• D) Will material-related drivers be more accurate than labor-related drivers?.
• E) There is no trade-off to consider when using cost drivers.

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Definitions:

Charisma

A personal quality that gives an individual influence or authority over large numbers of people, often associated with captivating and compelling leaders.

Trait Approach

An approach in psychology and leadership studies that suggests certain individual characteristics and qualities can make effective leaders.

Trait

A characteristic or quality that defines an individual and influences their behavior or attitudes.

Extraversion

A personality trait characterized by a tendency to be outgoing, sociable, and energetic, typically enjoying engagement in social settings and interactions.