An Allocation Base That Causes Overhead Costs to Be Incurred

question 17

Multiple Choice

An allocation base that causes overhead costs to be incurred is called a(n) :

• A) revenue driver.
• B) predetermined driver.
• C) cost driver.
• D) applied driver.

---

Definitions:

Residuals

The variances between real data points and those estimated by a theoretical model.

Regression Equation

A mathematical representation of the relationship between two or more variables where changes in an independent variable are used to estimate changes in a dependent variable.

Comedy Shows

Television programs or live performances that are intended to make the audience laugh.

Predicted Values

The estimated outcomes calculated by a statistical model or algorithm.