When selecting an activity driver, a company should consider
A) the cost of measurement.
B) the time of the year.
C) the cause and effect between the activity driver and the cost pool.
D) both a and C

Question

Quizplus · Accepted Answer

When selecting an activity driver, a company should consider both the cost of measurement and the cause and effect between the activity driver and the cost pool. The cost of measurement is important because it can affect the overall cost of the activity. The cause and effect relationship is important because it ensures that the activity driver chosen has a direct impact on the cost pool, helping to accurately allocate costs. The time of the year may be a factor in some cases, but it is not as important as the other two considerations. Therefore, D is the best choice.

When Selecting an Activity Driver, a Company Should Consider