Which of the following would be a good cost driver for salaries of product and supervisory salaries?
A)Number of hours worked is a good cost driver for salaries of product and supervisory salaries.
B)Number of people supervised is a good cost driver for salaries of product and supervisory salaries.
C)Number of department transactions is a good cost driver for salaries of product and supervisory salaries.
D)Number of customers served is a good cost driver for salaries of product and supervisory salaries.

Question

Quizplus · Accepted Answer

The number of people supervised would be a good cost driver for salaries of product and supervisory salaries as the more people a supervisor oversees, the higher their salary would typically be. Hours worked could potentially be a cost driver, but it would likely vary too much between employees to be a reliable measure. Department transactions and customers served are not directly related to the salaries of product and supervisory roles.

Which of the Following Would Be a Good Cost Driver