Consider the Following Factors

question 85

Multiple Choice

Consider the following factors:
I. The degree of correlation between consumption of an activity and consumption of a particular cost driver.
II. The likelihood that a particular cost driver will induce a desired behavioral effect.
III. The likelihood that a particular cost driver will cause an increase in the cost of measurement.
Which of these factors should be considered in the selection of a cost driver?

• A) I only.
• B) I and II.
• C) I and III.
• D) II and III.
• E) I, II, and III.

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Definitions:

Thought

The process of considering, reasoning, or reflecting about something, which forms part of human cognition.

Experience Assessment

The evaluation of individual experiences, often to gauge their impact on personal development or psychological state.

Ambiguous Stimulus

A stimulus that lacks clarity and can be interpreted in more than one way due to its vague nature.

Reliability

The extent to which an assessment tool produces stable and consistent results over multiple administrations or observations.