Identification of a cost-allocation base is not a critical element when using a strategy that will refine a costing system.

Name: Identification of a cost-allocation base is not a critical element when using a strategy that will refine a costing system.
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Question

Quizplus · Accepted Answer

Managers refine their cost systems by looking for effective cost=allocation basis (cost driver) and seek evidence of cause-and-effect when choosing a cost driver with the driver being the cause and the effect being the cost incurred.

Identification of a Cost-Allocation Base Is Not a Critical Element