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:

Organizational Culture

The collective beliefs, values, standards, and habits that dictate the social and psychological atmosphere within a business or organization.

Right Thing

A moral or ethical course of action that is considered appropriate, just, or in accordance with accepted social or professional standards.

Ethical Choice

The process of deciding among alternatives in a manner that reflects moral principles and values.

Ethical Dilemmas

Situations where individuals must choose between two conflicting moral principles or values.