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Cost driver selection can impact managers' behavior and how they make decisions.

A. True
B. False

1 Answer

4 votes

Final answer:

Cost driver selection can impact managers' behavior and decision-making.

Step-by-step explanation:

Cost driver selection can impact managers' behavior and how they make decisions. This statement is true. Cost drivers are factors that cause costs to change in an organization, and by selecting different cost drivers, managers can influence their decisions and the behavior of the organization. For example, if a manager chooses to focus on labor costs as a cost driver, they may prioritize labor-intensive processes and decisions, whereas if they choose to focus on materials costs, they may prioritize cost-saving measures related to materials sourcing and usage.

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