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Which of the Following Activity Cost Pools and Activity Measures

Question 37

Multiple Choice

Which of the following activity cost pools and activity measures likely has the lowest degree of correlation?  Activity Cost Pool  Activity Measure 1 Order department  Number of orders processed 2 Sales management  Time spent by managers in each sales  territory 3 Accounts receivable processing  Number of customers 4 Catering  Numbers of meals served 5 Employee travel to job sites (sites  Number of employees  are within 100-mile radius of  company headquarters)  \begin{array}{|l|l|l|l|}\hline & {\text { Activity Cost Pool }} & &{\text { Activity Measure }} \\\hline 1 & \text { Order department } && \text { Number of orders processed } \\\hline 2 & \text { Sales management } &&\text { Time spent by managers in each sales } \\&&&\text { territory }\\\hline 3 & \text { Accounts receivable processing } && \text { Number of customers } \\\hline 4 & \text { Catering } & &\text { Numbers of meals served } \\\hline 5 & \text { Employee travel to job sites (sites } & &\text { Number of employees } \\&\text { are within } 100 \text {-mile radius of }\\&\text { company headquarters) }\\\hline\end{array}


A) 1.
B) 2.
C) 3.
D) 4.
E) 5.

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