Mounce Catering Service uses an activity-based costing system.What would be the most appropriate cost driver for the activity of preparing meals?
A)Number of meals prepared
B)Number of orders taken
C)Number of rolls used
D)Rent on building

Question

Quizplus · Accepted Answer

The most appropriate cost driver for the activity of preparing meals would be the number of meals prepared as it directly correlates to the amount of resources and activities required to prepare those meals. The other options are not directly related to the meal preparation activity.

Mounce Catering Service Uses an Activity-Based Costing System