Which of the Following Statements Is True Regarding a Cost

question 14

Multiple Choice

Which of the following statements is true regarding a cost driver?

• A) Once a particular cost driver has been used for an activity, it may not be used again.
• B) Employees should never be made aware of the cost drivers for their department.
• C) There may be more than one potential cost driver for a particular activity.
• D) Choosing the wrong cost driver should not impact the determination of a product's cost.

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Definitions:

Nutritional Food Plan

A guideline or strategy designed to ensure dietary intake of essential nutrients for maintaining good health and well-being.

Market Wages

The prevailing rate of pay for work or services at a particular time and place, determined by supply and demand in the labor market.

Productivity

The efficiency with which inputs are converted into outputs in a production process, often measured as the ratio of output to input over a specific period.

Income Distribution

The way in which the total income of an economy is distributed among its population.