All the independent variables in a cost function estimated with regression analysis are cost drivers." Do you agree? Explain.

A$.$ Yes. A cost driver is any factor whose change will not cause a change in the total cost of a related cost object. A cause$-$and$-$effect relationship does not underlie selection of a cost driver. Some users of regression analysis include numerous independent variables in a regression model in an attempt to maximize goodness of fit, irrespective of the economic plausibility of the independent variables included. All of the independent variables included must be cost drivers.

B$.$ No$.$ A cost driver is any factor whose change will not cause a change in the total cost of a related cost object. A cause$-$and$-$effect relationship does not underlie selection of a cost driver. Some users of regression analysis include numerous independent variables in a regression model in an attempt to maximize goodness of fit, irrespective of the economic plausibility of the independent variables included. Some of the independent variables included may not be cost drivers.

C$.$ Yes. A cost driver is any factor whose change causes a change in the total cost of a related cost object. A cause$-$and$-$effect relationship underlies selection of a cost driver. Users of regression analysis include numerous independent variables in a regression model in an attempt to maximize goodness of fit, irrespective of the economic plausibility of the independent variables included. All of the independent variables included must be cost drivers.

$q,$ D$.$ No$.$ A cost driver is any factor whose change causes a change in the total cost of a related cost object. A cause$-$and$-$effect relationship underlies selection of a cost driver. Some users of regression analysis include numerous independent variables in a regression model in an attempt to maximize goodness of fit, irrespective of the economic plausibility of the independent variables included. Some of the independent variables included may not be cost drivers.