Tutors-R-Us provides academic enrichment and review activities for high school students in 4 subject areas: English, mathematics, science, and history. In November 2010, the firm's information system produced the following data: Regardless of subject area, clients pay $50 per hour for tutoring services. Costs associated with the Tutors-R-Us operations for November 2010 included:
The number of students in each area is most likely to be a cost driver for
A) Utility costs
B) Advertising costs
C) Cost for tutors
D) Price charged for tutoring

Question

Tutors-R-Us provides academic enrichment and review activities for high school students in 4 subject areas: English, mathematics, science, and history. In November 2010, the firm's information system produced the following data: Regardless of subject area, clients pay $50 per hour for tutoring services. Costs associated with the Tutors-R-Us operations for November 2010 included:
 The number of students in each area is most likely to be a cost driver for
A) Utility costs 
B) Advertising costs 
C) Cost for tutors 
D) Price charged for tutoring

Quizplus · Accepted Answer

The costs associated with tutors are likely to vary directly with the number of students being tutored in each subject area. As the number of students increases, more tutors may be needed to meet the demand. Therefore, the number of students in each area is most likely to be a cost driver for the cost of tutors.

Tutors-R-Us Provides Academic Enrichment and Review Activities for High School