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7. What is the primary trade-off that an accountant must consider when deciding whether to identify cost drivers? Is the cost/benefit of the process reasonable
7. What is the primary trade-off that an accountant must consider when deciding whether to identify cost drivers?
Is the cost/benefit of the process reasonable for more accurate cost behavior obtained.
Will the cost driver identification provide different costs for different purposes.
Will material related drivers be more accurate than labor-related drivers.
Will the cost relationship be to complex to understand.
There is no trade-off to consider using cost drivers.
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