A Key Concept Underlying Cost Driver Analysis Is That

question 46

Multiple Choice

A key concept underlying cost driver analysis is that

• A)all cost drivers identified should be used for cost accumulation.
• B)the cost of measuring a driver does not exceed the benefits of using it.
• C)only costs occurring at the unit-level should be assigned to products or services.
• D)organizational/facility costs are non-value-added and should never be assigned to products or services.

---

Definitions:

Mammary Glands

Specialized organs in mammals that produce milk to feed young offspring, predominant in female mammals.

Modified Sweat Glands

Specialized sweat glands such as mammary glands which serve additional functions beyond thermoregulation, including the secretion of milk.

Sebaceous Glands

Small oil-producing glands present in the skin of mammals, secreting sebum to lubricate skin and hair.

Testes

The male reproductive glands that produce sperm and testosterone.