Which of the following is not an important factor in determining the appropriate cost driver to use in allocating a cost?
A) A cause-and-effect relationship between the cost and the cost driver
B) The availability of information about the cost and cost driver
C) The ability of the cost driver to allocate indirect costs to cost objects
D) All of these are important factors in determining the appropriate cost driver to use in allocating a cost

Question

Quizplus · Accepted Answer

All of the factors listed - cause-and-effect relationship, availability of information, and ability to allocate indirect costs - are important in determining the appropriate cost driver to use in allocating a cost. Therefore, D is the correct answer.

Which of the Following Is Not an Important Factor in Determining