Consider the following activity: The 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 to install seats
C) number of mechanic hours
D) number of engineering hours

Question

Quizplus · Accepted Answer

The cost of the seats is directly proportional to the number of seats installed in the airplane. Therefore, the appropriate cost driver for the cost of the seats would be the number of seats installed. The other options do not have a direct correlation with the cost of the seats.

Consider the Following Activity: the Manufacturer in a Commercial Airplane