_____ is not a cost driver representing an "ability to bear" philosophy.
A)Revenue of each division
B)Cost of goods sold by each division
C)Total cost before central cost allocation in later division
D)Usage

Question

Quizplus · Accepted Answer

Usage is a cost driver that represents the actual consumption of resources by each division or activity. It does not reflect an "ability to bear" philosophy, as it is based on actual usage, rather than on the financial performance of each division or the company as a whole. On the other hand, choices A, B, and C are all financial metrics that could be influenced by the company's profitability or strategic decisions, and therefore could reflect an "ability to bear" philosophy.

_____ Is Not a Cost Driver Representing an "Ability to Bear