Choosing an economically plausible cost driver for indirect costs is fairly simple and knowledge of operations is unnecessary.

Question

Quizplus · Accepted Answer

Choosing an appropriate cost driver for indirect costs requires a good understanding of the operations, as it helps to identify the activities that incur those costs and the factors that drive those costs. It is essential to select a cost driver that accurately reflects how the indirect costs are generated and that can be measured with reasonable accuracy.

Choosing an Economically Plausible Cost Driver for Indirect Costs Is