Jasmine Doh Is Considering Using Cost Drivers That Are Measured

question 90

Multiple Choice

Jasmine Doh is considering using cost drivers that are measured in dollars (rather than physical units) for her company. Your advice is:

• A) This is a good idea as cost drivers measured in dollars are usually already recorded in the accounting system.
• B) This is a good idea as it avoids estimating costs associated with each physical unit of cost driver.
• C) This is a bad idea because dollar-based cost drivers are subject to price change.
• D) This is a bad idea because using dollar-based cost drivers oversimplifies the cost allocation process.

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Definitions:

Positron Emission Tomography

A nuclear medicine functional imaging technique used to observe metabolic processes in the body.

Computerised Tomography

A diagnostic imaging technique that uses computer-processed combinations of multiple X-ray measurements taken from different angles to produce cross-sectional images of specific areas of a scanned object.

Magnetic Resonance Imaging

A non-invasive imaging technology that produces detailed images of the body’s internal structures using a large magnet, radio waves, and a computer.

Electrographic Tomography

A brain imaging technique that measures electrical activity on the scalp and generates images of the brain's electrical activity.