When Evaluating and Choosing Cost Drivers All of the Following

question 144

Multiple Choice

When evaluating and choosing cost drivers all of the following are true EXCEPT:

• A)the cost driver is economically plausible.
• B)there is a significance of effect of the independent variable
• C)there is an independent verification of the relationship by a committee of cost accountants
• D)there is a goodness of fit between the various data points and the regression line

---

Definitions:

Rugae

The folds or ridges found on the internal surface of the stomach, which allow it to expand as needed.

Hepatic Lobule

The functional unit of the liver, consisting of a hexagonal structure that processes nutrients, detoxifies harmful substances, and produces bile.

Portal Triad

A distinctive arrangement within the liver consisting of a bile duct, a branch of the hepatic artery, and a branch of the hepatic portal vein, essential for liver function.

Disaccharides

Sugars formed by the combination of two monosaccharides, such as sucrose and lactose.