Which of the Following Statements Is True of Choosing Cost

question 30

Multiple Choice

Which of the following statements is true of choosing cost drivers under activity-based costing?

• A) All the cost drivers should be unit-level cost drivers.
• B) There should be a clear cause-and-effect relationship between cost drivers and cost pools.
• C) Cost drivers are independent variables.
• D) A single cost driver should be identified for all the activities.

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