Which of the following is the primary criterion for selecting a cost driver?
A)Causal relation.
B)Benefits received.
C)Reasonableness.
D)Fairness.

Question

Quizplus · Accepted Answer

The primary criterion for selecting a cost driver is causal relation, meaning that it should be directly related to the cost being incurred. This ensures that the allocation of costs is based on a logical and consistent relationship between the activity and its cost. Benefits received, reasonableness, and fairness may also be considered in selecting a cost driver but they are not the primary criterion.

Which of the Following Is the Primary Criterion for Selecting