The choices below depict five costs of Benton Corporation and a possible driver for each cost. Which of these choices likely contains an inappropriate cost driver?
A)Gasoline consumed; number of miles driven.
B)Manufacturing overhead incurred in a heavily automated facility; direct labour hours.
C)Sales commissions; gross sales revenue.
D)Building maintenance cost; building square footage.
E)Human resources department cost; number of employees.

Question

Quizplus · Accepted Answer

In a heavily automated facility, it is unlikely that the manufacturing overhead will be driven by direct labor hours as there will be minimal labor involved. Therefore, this cost driver is inappropriate.

The Choices Below Depict Five Costs of Benton Corporation and a Possible