What Should Determine Whether an Allocation Base Is a Good

question 34

Multiple Choice

What should determine whether an allocation base is a good cost driver?

• A) Whether or not the base can be measured in terms of 'hours'.
• B) Whether or not the base can be applied plantwide.
• C) Whether or not the base can be measured with absolute accuracy.
• D) Whether or not there is a cause-and-effect relationship between the base and the overhead cost.

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Definitions:

Qualitative Changes

Transformations in developmental stages that indicate a fundamental change in an individual's capabilities or behavior.

Cognition

The process of gaining knowledge and comprehension through thinking, experiencing, and sensing.

Brain Development

The process involving changes in the brain's structure and function over the course of a lifespan, critically influencing cognitive, motor, and emotional abilities.

Visible Imitation

The act of copying or mimicking visible actions or behaviors observed in others.