Which of the Following Is the Most Appropriate Cost Driver

question 5

Multiple Choice

Which of the following is the most appropriate cost driver for delivery of goods?

• A)Wages of the delivery drivers
• B)Number of deliveries made
• C)Depreciation on delivery trucks
• D)Insurance on delivery trucks

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Definitions:

Advertising

A paid form of nonpersonal communication transmitted through mass media, such as television commercials or magazine advertisements.

Communication

The act or process of using words, sounds, signs, or behaviors to express or exchange information or to express ideas, thoughts, feelings, etc., to someone else.

Industrial Products

Goods produced for use in production and operation for other industries, not intended for direct consumption by consumers.