Which of the Following Is an Appropriate Cost Driver for Allocating

question 22

Multiple Choice

Which of the following is an appropriate cost driver for allocating indirect costs to a human resources department in a service company?

• A) Number of employees
• B) Number of customers
• C) Square footage of office space
• D) Either number of employees or square footage of office space depending on the nature of the indirect cost

---

Definitions:

CPA

Stands for Cost Per Action, a metric in online advertising where the advertiser pays for each specified action linked to the advertisement.

Cost Per Engagement

A metric used in digital advertising to calculate the cost paid for each interaction (like, share, comment) with a piece of content.

Viral Activity

Online content that becomes extremely popular through rapid sharing, often across various social media platforms.

Content Creativity

The ability to generate innovative and engaging ideas for content across various platforms to attract and retain an audience.