Happy Foods uses ABC costing.Which of the following is most likely to be a cost driver for the cost of cashiering at a convenience store?
A)Cost of items purchased
B)Direct labor cost
C)Number of customers processed
D)Number of employees handling the job

Question

Quizplus · Accepted Answer

The number of customers processed is most likely to be a cost driver for the cost of cashiering at a convenience store because the cost of cashiering is directly related to the number of customers that need to be served. The more customers processed, the more cost incurred in terms of labor, time, and resources required to handle the transactions.

Happy Foods Uses ABC Costing