All individual cost items included in the dependent variable should have:
A)an economically plausible relationship with the independent variable.
B)the same cost driver.
C)a cause-and-effect relationship with the independent variable.
D)All of these answers are correct.

Question

Quizplus · Accepted Answer

All of these answers are correct. The dependent variable should have an economically plausible relationship, the same cost driver, and a cause-and-effect relationship with the independent variable. These factors ensure that the model accurately reflects the relationship between the dependent and independent variables, and can provide useful insights for decision making.

All Individual Cost Items Included in the Dependent Variable Should