Q387
An implementation of activity based costing would be possible only if accountants find
A.
goodness of each activity
B.
handling of each activity
C.
cost driver for each activity
AnswerD.
cost object for each activity
Answer: Option C
Solution
Answer: Option C
Solution:
An implementation of activity based costing would be possible only if accountants find cost driver for each activity. A cost driver is the unit of an activity that causes the change in activity's cost. cost driver is any factor which causes a change in the cost of an activity.