There are six important factors when selecting appropriate cost drivers.

Question

Quizplus · Accepted Answer

There are typically two primary factors considered when selecting appropriate cost drivers: the cause-and-effect relationship and the benefits received. However, the number of factors can vary based on the specific costing system and methodology being applied, but the statement of "six important factors" is not a standard or widely recognized guideline in cost accounting practices.

There Are Six Important Factors When Selecting Appropriate Cost Drivers