Indicate whether each of the following statements is true or false.When a company can identify more than one cost driver for a particular cost, it should use the cost driver with the strongest cause-and-effect relationship to the cost._____Availability and cost of information are likely to influence a company's choice of cost drivers._____A company should never use a cost driver unless there is a strong causal relationship between the cost and the cost driver._____Different cost drivers almost always give about the same results when a cost is allocated to cost objects._____In allocating costs among departments, a company must consider how department managers are likely to respond._____
What will be an ideal response?
| When a company can identify more than one cost driver for a particular cost, it should use the cost driver with the strongest cause-and-effect relationship to the cost. | True |
| Availability and cost of information are likely to influence a company's choice of cost drivers. | True |
| A company should never use a cost driver unless there is a strong causal relationship between the cost and the cost driver. | False |
| Different cost drivers almost always give about the same results when a cost is allocated to cost objects. | False |
| In allocating costs among departments, a company must consider how department managers are likely to respond. | True |
You might also like to view...
The underlying cause of conflicts in ranking for projects by internal rate of return and net present value methods is ________
A) the reinvestment rate assumption regarding intermediate cash flows B) that neither method explicitly considers the time value of money C) the assumption made by the IRR method that cash inflows are spread equally throughout the timeline D) that NPV approach favors small projects with high returns
On Monday, Mick puts an offer in the mail to Sheri to sell his guitar for $50. Monday night when jamming with his buddies, he decides he will really miss his old guitar and has second thoughts about selling it. Tuesday morning he puts a revocation in the mail informing Sheri he has changed his mind and the guitar is no longer for sale. The revocation is effective on Tuesday morning.
Answer the following statement true (T) or false (F)
Inconsistency of services refers to the fact that
A. there is no regulation of service industries in terms of basic standards of quality. B. the quality of service provided by a firm is often inconsistent with its image. C. training and standardization of service delivery procedures cannot be accomplished. D. the performance of one employee may vary from the performance of another employee even though the same firm employs both. E. services have a varying degree of durability.
What kind of life insurance starts out as temporary coverage but can be later modified to permanent coverage without evidence of insurability?
What will be an ideal response?