Which would be an appropriate cost driver for the ordering and receiving activity cost pool?
A) Machine setups
B) Purchase orders
C) Machine hours
D) Inspections

Question

Quizplus · Accepted Answer

The appropriate cost driver for the ordering and receiving activity cost pool would be purchase orders. This is because ordering and receiving activities involve placing and receiving orders from suppliers, which incurs costs such as processing purchase orders, handling invoices, and communicating with suppliers. Therefore, the number of purchase orders processed would be an appropriate cost driver for this cost pool.

Which Would Be an Appropriate Cost Driver for the Ordering