FNG employs 4 purchasing agents. Rick processes purchase orders for vendors starting with the letters A through H, while Merrill does the same task for vendors from I through N. Phillip deals with vendors in the O through R range, and Kathy handles the rest of the alphabet. The most likely cost driver for the purchasing agents' salaries is the
A) Number of vendors within each alphabetical segment
B) Number of purchase orders processed each month
C) Average dollar amount of each purchase order
D) Number of product lines FNG produces

Question

Quizplus · Accepted Answer

The most likely cost driver for the purchasing agents' salaries is the number of purchase orders processed each month, since their primary responsibility is to process purchase orders for vendors. The other options are not as directly related to the job duties of the purchasing agents.

FNG Employs 4 Purchasing Agents