Which of the following is the most appropriate cost driver for allocating the cost of warranty services?
A) number of employees
B) number of materials purchased
C) number of machine hours
D) number of service calls

Question

Quizplus · Accepted Answer

The number of service calls would be the most appropriate cost driver for allocating the cost of warranty services as the cost of warranty services will be incurred based on the number of times customers request warranty services. The other options listed would not be as directly related to the cost of warranty services.

Which of the Following Is the Most Appropriate Cost Driver