A Cost Driver Should Be Measurable and Have an Economically

question 58

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

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Definitions:

Maximum Amount

The highest limit specified for an action, transaction, or financial account, beyond which one cannot go.

Credit For The Elderly

Credit for the Elderly is a tax credit available to eligible taxpayers aged 65 or older or those who are retired on permanent and total disability and who meet certain income limitations.

Nontaxable Social Security Benefits

Portions of Social Security payments that are not subject to income tax under certain conditions.

Joint Return

Joint Return is a tax filing status that allows married couples to combine their income, exemptions, deductions, and credits on a single tax return.