Which of the Following Would Be an Inappropriate Cost Driver

question 10

Multiple Choice

Which of the following would be an inappropriate cost driver in an activity-based costing system?

• A) Number of customer orders
• B) Number of units produced
• C) Machine hours
• D) Any of these are acceptable as long as they are reasonable given the specific cost pool

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Definitions:

Sebum

Oily secretion of the sebaceous glands of the skin.

Excision

The surgical removal of a body tissue, organ, or other entity either completely or partially.

Sebaceous Gland

Glands located under the skin's surface that produce sebum, an oily substance that helps to keep the skin moisturized.

Hypoallergenic Tape

A type of medical adhesive tape that is designed to minimize allergic reactions and skin irritation.