Which of the Following Statements Regarding Cost Drivers Is False

question 75

Multiple Choice

Which of the following statements regarding cost drivers is false?

• A) Different businesses can have different sets of cost drivers.
• B) Cost drivers should generally be chosen based on a cause-and-effect relationship between the driver and the specific cost being considered.
• C) Cost drivers are groups of overhead costs that are similar.
• D) An activity could have more than one potential cost driver.

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Definitions:

Voltage

An electrical measurement that represents the difference in electric potential energy between two points in a circuit.

Hedonic-Utilitarian

A dichotomy in consumer behavior contrasting pleasure-seeking motives (hedonic) with functional or practical motives (utilitarian) in decision making.

Approach-Avoidance

A psychological conflict that occurs when a goal is both desirable and undesirable at the same time.

Guilty Pleasure

An activity or item that one enjoys despite feeling guilt for enjoying it, usually due to social perceptions or its trivial nature.