Which would be an appropriate cost driver for the delivery activity?
A) Customers.
B) Purchase orders.
C) Shipments.
D) Inspections.

Question

Quizplus · Accepted Answer

The most appropriate cost driver for the delivery activity is shipments since the delivery costs are directly related to the number of shipments made by the company. The more shipments made, the higher the delivery costs that the company will incur. Customers, purchase orders, and inspections are not directly related to the delivery activity, so they are not appropriate cost drivers for this particular activity.

Which Would Be an Appropriate Cost Driver for the Delivery