The MOST likely cost driver of distribution costs is the:
A)number of parts within the product.
B)number of production hours.
C)number of products manufactured.
D)number of miles driven.

Question

Quizplus · Accepted Answer

Distribution costs are primarily driven by the distance of transportation and the geographical location of the customers. Therefore, the number of miles driven is the most likely cost driver for distribution costs.

The MOST Likely Cost Driver of Distribution Costs Is The