Number of invoices is most appropriate as a cost driver for which of the following types of activity costs?
A) Machining
B) Purchasing
C) Assembly
D) Payroll

Question

Quizplus · Accepted Answer

The number of invoices is most appropriate as a cost driver for purchasing activities because it directly relates to the number of transactions or orders processed by the purchasing department.

Number of Invoices Is Most Appropriate as a Cost Driver