Which of the Following Statements Is True Regarding a Cost

question 14

Multiple Choice

Which of the following statements is true regarding a cost driver?

• A) Once a particular cost driver has been used for an activity, it may not be used again.
• B) Employees should never be made aware of the cost drivers for their department.
• C) There may be more than one potential cost driver for a particular activity.
• D) Choosing the wrong cost driver should not impact the determination of a product's cost.

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Definitions:

Real GDP

The measure of a country's economic output adjusted for price changes, such as inflation or deflation, to reflect the true value of goods and services produced.

Investment

The action or process of allocating resources, usually money, with the expectation of generating an income or profit.

Real GDP

The measure of the value of economic output adjusted for price changes (inflation or deflation), reflecting the real quantity of goods and services produced.

Recession

A notable decrease in economic performance affecting the entire economy, persisting for an extended period beyond several months, is usually observed in metrics such as real GDP, real income, employment, industrial production, and wholesale-retail sales.