Which of the following would be the most appropriate activity and cost drivers pairing for a Purchasing Department?
A) Activity: Placing orders - Possible Cost Driver: Number of orders.
B) Activity: Placing orders - Possible Cost Driver: Number of new hires.
C) Activity: Placing orders - Possible Cost Driver: Frequency of audits.
D) Activity: Placing orders - Possible Cost Driver: Employee turnover rate.

Question

Quizplus · Accepted Answer

The number of orders is a direct and logical cost driver for the activity of placing orders, as it directly correlates with the workload and resources required by the Purchasing Department.

Which of the Following Would Be the Most Appropriate Activity