The selection of activity cost drivers requires making choices related to the usage of transaction drivers,duration drivers,and intensity drivers.

Question

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The statement is true. Activity cost drivers are used to determine the cost of a particular activity within an organization. A cost driver is a factor that affects the cost of an activity. These factors can be transaction drivers, duration drivers, or intensity drivers. Choosing the appropriate cost driver is important for accurate cost calculation.

The Selection of Activity Cost Drivers Requires Making Choices Related