Managers usually decide which cost driver to use based upon which of the following factors?
A)Causal relation.
B)Cost considerations.
C)Generally accepted costing techniques.
D)Uniform cost driver standards.

Question

Quizplus · Accepted Answer

Managers usually decide which cost driver to use based on causal relation, meaning they choose the cost driver that is most directly related to the cost being allocated. Cost considerations and generally accepted costing techniques may also be taken into account, but causal relation is the primary factor. Uniform cost driver standards may be implemented within an organization, but they do not necessarily dictate which cost driver to use.

Managers Usually Decide Which Cost Driver to Use Based Upon