Which of the following is an appropriate cost driver for issuance of purchase orders?
A)Number of units
B)Number of purchase orders
C)Number of set ups
D)Either number of units or number of purchase orders would be appropriate If you wanted to follow format used previously, Either number of units or number of purchase orders would be appropriate. Instead of A or B
Agree. Change made. JMF
If you wanted to follow format used previously, Either number of units or number of purchase orders would be appropriate. Instead of A or B
Agree. Change made. JMF

Question

Quizplus · Accepted Answer

The number of purchase orders is a direct driver of the costs associated with issuing purchase orders. The more purchase orders that are issued, the more resources (time, labor, materials) will be required to process them. Therefore, this is an appropriate cost driver for this activity.

Which of the Following Is an Appropriate Cost Driver for Issuance