Which of the following statements is FALSE? a. There is a cause-and-effect relationship between the cost driver and the amount of cost. b. Over the long run all costs have cost drivers. c. Volume

Principles of Accounting Volume 2
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Chapter2: Building Blocks Of Managerial Accounting
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Problem 14MC: Which of the following statements is true regarding average fixed costs? A. Average fixed costs per...
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Which of the following statements is FALSE?
a.
There is a cause-and-effect relationship between the cost driver and the amount of cost.
b.
Over the long run all costs have cost drivers.
c.
Volume of production is a cost driver of direct manufacturing costs.
d.
Fixed costs have cost drivers over the short run.
 
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