When choosing an activity basis to measure in conducting cost behavior analysis, which of the...
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Accounting
When choosing an activity basis to measure in conducting cost behavior analysis, which of the following statements is not true?
Select one:
A. There should be a logical causal relationship between the cost and the driver.
B. The quantities of the driver and the costs should be highly correlated.
C. The cost of measuring the driver should not outweigh the benefit it provides.
D. A cost-volume graph may be useful in identifying an activity base.
E. All of the above are true.
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