Consider the following activity: The installation of seats by an airplane manufacturer in a commercial airplane.What is an appropriate cost driver for the cost of the seats?
A)number of seats installed
B)number of labor hours used for installation
C)number of mechanic hours
D)number of engineering hours

Question

Quizplus · Accepted Answer

The number of seats installed is the most appropriate cost driver since the cost of the seats will directly be proportional to the number of seats installed. The number of labor hours, mechanic hours, and engineering hours may not accurately represent the cost of the seats since different seats may require different levels of expertise/time to install.

Consider the Following Activity: the Installation of Seats by an Airplane