Consider the following factors: I.The degree of correlation between consumption of an activity and consumption of a particular cost driver. II.The likelihood that a particular cost driver will induce a desired behavioral effect. III.The likelihood that a particular cost driver will cause an increase in the cost of measurement. Which of these factors should be considered in the selection of a cost driver?
A. I only.
B. I and II.
C. I and III.
D. II and III.
E. I, II, and III.
Answer: E
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