When using the cause-and-effect criterion, cost drivers are selected as the cost allocation bases.

Name: When using the cause-and-effect criterion, cost drivers are selected as the cost allocation bases.
Brand: Quizplus
Rating: 4.9 (31 reviews)

Question

Quizplus · Accepted Answer

Cost drivers are used to allocate costs to products, services, or departments based on their cause-and-effect relationship with the costs incurred. Therefore, when using the cause-and-effect criterion, cost drivers are selected as the cost allocation bases.

When Using the Cause-And-Effect Criterion, Cost Drivers Are Selected as the Cost