Which would be an appropriate cost driver for the shipping and receiving activity?
A) number of inspections
B) number of machine hours
C) number of batches
D) number of pounds of product shipped

Question

Quizplus · Accepted Answer

The number of pounds of product shipped would be an appropriate cost driver for shipping and receiving activity as the cost of shipping and receiving activities is likely to be driven by the volume and weight of the products being shipped. The other options, such as number of inspections, number of machine hours, or number of batches, are unlikely to have a direct correlation with the costs of shipping and receiving.

Which Would Be an Appropriate Cost Driver for the Shipping