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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