A decision to work closely with a limited number of suppliers for the purpose of ensuring that the proper materials are available at the optimal time is an example of:
A) A batch level cost driver
B) An activity cost driver
C) An organizational cost driver
D) A structural cost driver

Question

Quizplus · Accepted Answer

Organizational cost drivers are choices that a company makes regarding the organization of activities. A decision to work with a limited number of suppliers is an example of an organizational cost driver.

A Decision to Work Closely with a Limited Number of Suppliers