Which of the following always has a direct cause-effect relationship to a cost?
A)yes yes
B)yes no
C)no yes
D)no no

Question

Which of the following always has a direct cause-effect relationship to a cost? 
A)yes yes 
B)yes no 
C)no yes 
D)no no

Quizplus · Accepted Answer

A direct cause-effect relationship between an activity and a cost is called a cost driver. In this case, the cost driver would be the cause and the cost would be the effect. Therefore, if there is a yes for cost driver and a yes for cost, there is a direct cause-effect relationship. Answer C is the only option where there is a yes for cost driver and a yes for cost.

Which of the Following Always Has a Direct Cause-Effect Relationship