Collecting data on the dependent variable and the cost driver may include:
A)interviews with managers
B)collecting data over a long period of time
C)collecting data from different entities over the same period of time
D)All of these answers are correct.

Question

Quizplus · Accepted Answer

Collecting data on both the dependent variable and the cost driver requires input from different sources, including managers who are knowledgeable about the process, and taking measurements over a significant period to ensure accuracy. Collecting data from different entities over the same period of time is essential to compare how the activity impacts costs across different organizations. All three methods are, therefore, effective in gathering the data required for the cost analysis.

Collecting Data on the Dependent Variable and the Cost Driver