When Evaluating and Choosing Cost Drivers All of the Following

question 2

Multiple Choice

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

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

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Definitions:

Shape Constancy

The perceptual phenomenon where the perceived shape of an object remains constant despite changes in the viewing angle or distance.

Retinal Image

The image projected onto the retina, which is the light-sensitive layer at the back of the eye.

Increasingly Larger

Describes a process or condition that grows or expands in size, volume, or quantity over time.

Distance

A measurement of the space between two points, often discussed in the context of physical space but also applicable in abstract senses.