Which of the following is most likely to be the cost driver for the packaging and shipping activity?
A)Number of setups.
B)Number of components.
C)Number of orders.
D)Hours of testing.
E)Number of production runs.

Question

Quizplus · Accepted Answer

The number of orders is the most likely cost driver for packaging and shipping activity as each order will require its own packaging and shipping arrangements, leading to a direct correlation between the number of orders and the cost of packaging and shipping. The other choices do not have a direct relationship with packaging and shipping.

Which of the Following Is Most Likely to Be the Cost