Which of the Following Correctly Describes the Term Cost Driver

question 31

Multiple Choice

Which of the following correctly describes the term cost driver?

• A) the inflation rate that causes costs to rise
• B) the average inventory costs incurred at any point of time
• C) the primary factor that causes a cost to be incurred
• D) the total material, labor, and overhead costs of a completed job

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Definitions:

Cultural Difference

The varying beliefs, behaviors, languages, practices, and expressions considered unique to members of a specific ethnicity, society, or nation.

External Standards

Criteria or benchmarks that originate outside of an individual or process, used for comparison or evaluation purposes.

Internal Standards

The personal criteria or benchmarks one uses for behavior, which are developed based on one’s values and beliefs.

Thematic Apperception Test

A projective psychological test involving a series of ambiguous images presented to an individual, who then tells a story based on each image, revealing underlying motives, feelings, and themes.