Indicate Whether Each of the Following Statements Is True or False

question 57

Short Answer

Indicate whether each of the following statements is true or false.
1. 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.
2. Availability and cost of information are likely to influence a company's choice of cost drivers.
3. A company should never use a cost driver unless there is a strong causal relationship between the cost and the cost driver.
4. Different cost drivers almost always give about the same results when a cost is allocated to cost objects.
5. In allocating costs among departments, a company must consider how department managers are likely to respond.

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Definitions:

Priming

A mental phenomenon in which experiencing one stimulus affects the reaction to another stimulus that follows, all happening without deliberate direction or awareness.

Nerve Cells

Basic building blocks of the nervous system, responsible for sending and receiving signals throughout the body.

Subliminally Presented Stimuli

Stimuli presented below the threshold of conscious perception, designed to influence behavior or thought without awareness.

Absolute Thresholds

The minimum level of stimulus intensity needed for a stimulus to be perceived.