Which Would Be an Appropriate Cost Driver for the Ordering

question 103

Multiple Choice

Which would be an appropriate cost driver for the ordering and receiving activity cost pool?

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

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Definitions:

Abduction

The action of moving a limb or different body part away from the body's central axis or away from another body part.

Adduction

The movement of a body part toward the central axis of the body.

Circumduction

A circular movement of a limb or eye that combines flexion, extension, abduction, and adduction.

Rotation

The action or process of rotating on or as if on an axis or center, commonly used to describe the movement of celestial bodies or mechanical parts.