Many Organizations Use a Linear Relationship with a Single Cost

question 94

Multiple Choice

Many organizations use a linear relationship with a single cost driver to describe a cost even though the cost may have multiple cost drivers.Why?

• A) This approach is easier and less expensive.
• B) The cost of developing a more complex function is greater than the benefit.
• C) Cost estimates from the simple function are accurate enough for most decisions.
• D) All of the above

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Definitions:

Socialization

The lifelong process by which individuals learn and internalize the values, beliefs, norms, and social skills necessary to participate within their society.

Family

A primary group of people—usually related by ancestry, marriage, or adoption—who form a cooperative economic unit to care for any offspring (and each other) and who are committed to maintaining the group over time.

Social Expectations

The norms and standards established by society that influence and regulate individuals' behavior, roles, and interactions.

Individuality

The quality or character of being an individual; distinctiveness and uniqueness of an individual in contrast to others within a group.