Indicate Whether Each of the Following Statements Is True or False

question 159

Essay

Indicate whether each of the following statements is true or false.
When a company can identify more than one cost driver for a particular cost, it should use the cost driver with the strongest cause-and-effect relationship to the cost.
Availability and cost of information are likely to influence a company's choice of cost drivers.
A company should never use a cost driver unless there is a strong causal relationship between the cost and the cost driver.
Different cost drivers almost always give about the same results when a cost is allocated to cost objects.
In allocating costs among departments, a company must consider how department managers are likely to respond.

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Definitions:

Congestive Heart Failure

A condition in which the heart is unable to pump blood effectively, leading to congestion of blood in the organs.

Left-sided Heart Failure

A condition where the left side of the heart is unable to pump blood efficiently, leading to a buildup of fluid in the lungs.

Atherosclerosis

A condition characterized by the hardening and narrowing of the arteries due to the build-up of plaque on the artery walls, which can lead to cardiovascular diseases.

Fatty Substances

Lipids that are found in blood and body tissues, involved in various bodily functions.