Choosing an economically plausible cost driver for indirect costs is fairly simple and knowledge of operations is generally unnecessary.

Question

Quizplus · Accepted Answer

Choosing an appropriate cost driver for indirect costs requires a good understanding of the operations and activities that generate these costs. Without this understanding, it can be difficult to select a meaningful and accurate cost driver that will allocate these costs fairly and accurately to products or services.

Choosing an Economically Plausible Cost Driver for Indirect Costs Is