Which of the Following Correctly Describes the Term Cost Driver

question 31

Multiple Choice

Which of the following correctly describes the term cost driver?

• A) the inflation rate that causes costs to rise
• B) the average inventory costs incurred at any point of time
• C) the primary factor that causes a cost to be incurred
• D) the total material, labor, and overhead costs of a completed job

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Definitions:

Dual-Process Theory

A cognitive theory suggesting that thought can arise in two different ways, or as a result of two different processes, often described as intuitive and analytical thinking.

Bounded Rationality

The concept that decision-making is limited by the information available, the cognitive limitations of the individual, and the finite amount of time available to make a decision.

Baseball Diamond

A four-cornered infield where baseball is played, consisting of home plate, first base, second base, and third base in a diamond shape.

Attributions

Attributions are the explanations or reasons we construct for why things happen, including the behaviors and actions of ourselves and others.