Which of the Following Is Not an Important Factor in Determining

question 49

Multiple Choice

Which of the following is not an important factor in determining the appropriate cost driver to use in allocating a cost?

• A) A cause-and-effect relationship between the cost and the cost driver.
• B) The availability of information about the cost and cost driver.
• C) The ability of the cost driver to allocate indirect costs to cost objects.
• D) All of the answers are important factors in determining the appropriate cost driver to use in allocating a cost.

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Definitions:

Cognitive Ability

The capacity to perform mental processes such as thinking, reasoning, and problem-solving.

Verbal Skills

The ability to express ideas effectively and communicate information through spoken words.

Quantitative Skills

The ability to handle and analyze numerical data effectively.

Defamation

A false communication, either spoken (slander) or written (libel), that injures someone's reputation by lowering them in the estimation of the community.