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1. What is the primary trade-off an accountant must consider when deciding whether to identify cost drivers? Is the cost/benefit of the process reasonable for more accurate behavior obtained. Will the cost driver identification provide different costs for different purposes Will material related drivers be more accurate than labor-related drivers Will the cost relationship be to complex to  understand There is non trade-off to consider using cost drivers 2. An important first step in studying managerial accounting is to create a framework for thinking about the various types of cost incurred by organizations and how those costs are actively managed. True or False

1. What is the primary trade-off an accountant must consider when deciding whether to identify cost drivers? Is the cost/benefit of the process reasonable for more accurate behavior obtained. Will the cost driver identification provide different costs for different purposes Will material related drivers be more accurate than labor-related drivers Will the cost relationship be to complex to  understand There is non trade-off to consider using cost drivers 2. An important first step in studying managerial accounting is to create a framework for thinking about the various types of cost incurred by organizations and how those costs are actively managed. True or False

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. What is the primary trade-off an accountant must consider when deciding whether to identify cost drivers?

  • Is the cost/benefit of the process reasonable for more accurate behavior obtained.
  • Will the cost driver identification provide different costs for different purposes
  • Will material related drivers be more accurate than labor-related drivers
  • Will the cost relationship be to complex to  understand
  • There is non trade-off to consider using cost drivers

2. An important first step in studying managerial accounting is to create a framework for thinking about the various types of cost incurred by organizations and how those costs are actively managed.

True or False

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