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:

Acceptance

In contract law, it refers to the agreement of the offeree to the terms of the offer, creating a binding contract.

Circumstances

The conditions or facts affecting a situation, event, or action, which can influence the outcome or how it is perceived.

Reasonably Definite Terms

A requirement for enforceable contracts specifying that terms must be clear enough for the contracting parties to understand their obligations.

Written Document

A formal piece of writing that records information, transactions, or agreements, and is used as evidence or reference.