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:

Behaviourally Inhibited

A temperament characterized by a tendency to react with fear or withdrawal in new situations or when encountering unfamiliar people or environments.

Anxious Temperament

A predisposition to respond to situations with fear or anxiety, often resulting from genetic or environmental factors.

Anxiety Disorders

A group of mental health disorders characterized by significant feelings of anxiety and fear, impacting daily living.

Behaviourally Inhibited

Describes individuals who demonstrate a consistent pattern of shyness, fearfulness, and withdrawal from unfamiliar people, situations, or environments.