Which of the following is an appropriate cost driver for issuance of purchase orders?
A) Number of units
B) Number of purchase orders
C) Number of set ups
D) Either A or Bnumber of units or number of purchase orders would be appropriate
If you wanted to follow format used previously,Either number of units or number of purchase orders would be appropriate.Instead of A or B
Agree.Change made.JMF
If you wanted to follow format used previously,Either number of units or number of purchase orders would be appropriate.Instead of A or B
Agree.Change made.JMF

Question

Quizplus · Accepted Answer

Activity-based costing uses both volume-based cost drivers and activity-based cost drivers.Volume-based drivers are appropriate for indirect costs that increase or decrease relative to the volume of activity.In this situation,the total cost of the processing purchase orders would increase or decrease relative to the volume of purchase orders.

Which of the Following Is an Appropriate Cost Driver for Issuance