An "Ordering and Receiving Materials" cost pool would most likely have as a cost driver:
A) machine hours.
B) number of setups.
C) number of purchase orders.
D) number of inspection tests.

Question

Quizplus · Accepted Answer

Ordering and receiving materials involve the process of creating and processing purchase orders, thus the number of purchase orders would be the most suitable cost driver for this cost pool. Machine hours and number of setups are more relevant to manufacturing overhead costs such as depreciation and maintenance, while number of inspection tests is more relevant to quality control costs.

An "Ordering and Receiving Materials" Cost Pool Would Most Likely