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:

401k Plans

Retirement savings plans sponsored by employers that allow employees to save and invest a piece of their paycheck before taxes are taken out.

403b Plans

Tax-deferred retirement savings plan available for public education organizations, some non-profit employers, and self-employed ministers.

Tax Penalty

An additional charge imposed by the tax authority on a taxpayer for not meeting tax obligations or for errors in a tax return.

Taxable Withdrawals

Withdrawals from an investment account that are subject to income tax, usually from accounts that offer tax advantages at the time of deposit or investment.