Which Would Be an Appropriate Cost Driver for the Delivery

question 55

Multiple Choice

Which would be an appropriate cost driver for the delivery activity?

• A) Customers.
• B) Purchase orders.
• C) Shipments.
• D) Inspections.

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Definitions:

Balance Sheet

A financial statement that presents a company's assets, liabilities, and shareholders' equity at a specific point in time, showing its financial position.

Cost of Goods Sold

The expenses directly linked to the creation of a company's sold products, comprising both materials and labor.

Factory Rent

Refers to the cost incurred for renting a facility or space for manufacturing operations, a common type of fixed expense for manufacturers.

Direct Labor

The price of paying staff who are directly participating in the manufacturing of goods or provision of services.