Which of the Following Is Not an Important Factor in Determining

question 49

Multiple Choice

Which of the following is not an important factor in determining the appropriate cost driver to use in allocating a cost?

• A) A cause-and-effect relationship between the cost and the cost driver.
• B) The availability of information about the cost and cost driver.
• C) The ability of the cost driver to allocate indirect costs to cost objects.
• D) All of the answers are important factors in determining the appropriate cost driver to use in allocating a cost.

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Definitions:

Real GDP

Real Gross Domestic Product, which adjusts the GDP for inflation to show the actual worth of an economy's total production of goods and services within a year.

Real Terms

Refers to economic measures adjusted for inflation, enabling comparison of purchasing power across different times.

Population

The total number of people inhabiting a particular area, country, or region.

Net Exports

The net amount obtained when a nation's overall imports are subtracted from its overall exports.