Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A cost driver should be measurable and have an economically plausible relationship with the dependent variable which means: A. that the cost driver can be

A cost driver should be measurable and have an economically plausible relationship with the dependent variable which means: 


A. that the cost driver can be identified in an economically feasible way 


B. that the relationship is based on correlation 


C, that the relationship is based on a cause-and-effect criterion and makes economic sense to management 


D. that the relationship must be based on a physical relationship

Step by Step Solution

There are 3 Steps involved in it

Step: 1

In the context of cost accounting a cost driver is any factor which causes a change in the cost of a... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost management a strategic approach

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

5th edition

73526940, 978-0073526942

More Books

Students also viewed these Accounting questions

Question

=+ Describe the components. Which month was left out? Why?

Answered: 1 week ago