Finding a single cost driver that changes in the same proportion as variable factory overhead costs is:
A) Simplified by breaking out the fixed portion of overhead cost.
B) The first step in variable overhead cost assignment.
C) Difficult but manageable using advanced statistical techniques.
D) An important goal of effective cost system design.
E) Difficult, if not impossible, because of the underlying nature of variable overhead cost components.

Question

Quizplus · Accepted Answer

Variable overhead costs consist of various components that may not change in proportion to a single cost driver, making it difficult to find one that aligns perfectly with changes in these costs.

Finding a Single Cost Driver That Changes in the Same