Aslowas Ltd is a large merchandiser that employs numerous accounts payable clerks. Their jobs involve processing invoices and paying invoices at regular intervals. Which of the following is the most likely cost driver for the accounts payable activity cost pool?
A) Number of journal entries
B) Number of staff in the administration building
C) Number of invoices processed
D) Average dollar amount for each purchase

Question

Quizplus · Accepted Answer

The most likely cost driver for the accounts payable activity cost pool is the number of invoices processed, as this directly impacts the workload and resources needed for processing payments.

Aslowas Ltd Is a Large Merchandiser That Employs Numerous Accounts