Which Would Be an Appropriate Cost Driver for the Purchasing

question 27

Multiple Choice

Which would be an appropriate cost driver for the purchasing activity cost pool?

• A) Machine setups
• B) Purchase orders
• C) Machine hours
• D) Inspections

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Definitions:

Comprehensive Component Monitor

A system in vehicular onboard diagnostics that checks the operational status of various components and subsystems to ensure they are working correctly and meet emissions standards.

Diagnostic Test

A systematic examination to determine the cause of a malfunction or disease in vehicles, computers, or biological entities.

ECM

Electronic Control Module, a term often used in automotive engineering referring to a computer that controls one or more electrical systems or subsystems in a vehicle.

Input and Output Circuits

Electrical circuits designed to receive signals (input) and deliver responses or actions (output), fundamental in electronic and control systems.