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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
True or False
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