Which of the Following Statements Is True of Choosing Cost

question 30

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.

---

Definitions:

Fraud Triangle

A model that describes the three elements present when an individual commits fraud: opportunity, pressure, and rationalization.

International Companies

Businesses that operate across multiple countries beyond their original or home country, dealing with international production or trade.

U.S Companies

Businesses incorporated and operating within the United States, subjected to U.S federal and state laws and regulations.

Bank Errors

discrepancies between a bank statement and the records of the account holder, often requiring adjustments.