Which of the following would be the most appropriate cost driver for delivery of goods?
A)Wages of the delivery drivers
B)Number of deliveries made
C)Depreciation on delivery trucks
D)Insurance on delivery trucks

Question

Quizplus · Accepted Answer

The number of deliveries made would be the most appropriate cost driver for delivery of goods as the cost of delivering is directly related to the number of deliveries made, i.e., more deliveries would result in higher costs. The wages of the drivers, depreciation on delivery trucks, and insurance on delivery trucks are indirect costs that may contribute to the cost of delivery but do not vary directly with the number of deliveries made.

Which of the Following Would Be the Most Appropriate Cost