Consider the following factors: I. The degree of correlation between consumption of an activity and consumption of a particular cost driver. II. The likelihood that a particular cost driver will induce a desired behavioral effect. III. The likelihood that a particular cost driver will cause an increase in the cost of measurement. Which of these factors should be considered in the selection of a cost driver?

A. I only.

B. I and II.

C. I and III.

D. II and III.

E. I, II, and III.

An example of a customer-value-added activity is:

A. final painting and polishing of the product.

B. installation of a computerized human resource management module.

C. shortening the customers' billing cycle.

D. addition of an employee hotline for workplace complaints.

E. maintenance of an adequate safety stock.