Lookin' for a Home is an animal shelter in Saskatoon, Saskatchewan. The shelter relies on government grants and private donations for funding. It takes in homeless dogs and cats and keeps them until they are adopted by qualified individuals. One of the shelter's cost pools is animal recordkeeping, which involves maintaining a database with details about each animal in the shelter. Which of the following is the most appropriate cost driver for the animal recordkeeping cost pool?
A) Number of government grants sought
B) Number of employees who work in the shelter
C) Number of animal intake and adoption transactions
D) Square metres allocated to the recordkeeping operation

Question

Quizplus · Accepted Answer

The most appropriate cost driver for the animal recordkeeping cost pool would be the number of animal intake and adoption transactions as this would directly relate to the amount of recordkeeping required. The other options are not as relevant, as the number of government grants sought, number of employees, and square meters allocated to the recordkeeping operation would not necessarily have a direct impact on the amount of recordkeeping required.

Lookin' for a Home Is an Animal Shelter in Saskatoon