Which of the Following Would Likely Be the Most Appropriate

question 70

Multiple Choice

Which of the following would likely be the most appropriate cost driver to allocate machine set-up costs to products?

• A)Machine hours.
• B)Direct labor hours.
• C)Number of production runs.
• D)Number of products.
• E)Number of purchase orders.

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Definitions:

Legitimate Business Purpose

A valid, lawful reason conducted by a business that justifies certain actions or policies.

Undue Hardship

A significant difficulty or expense imposed on an employer by accommodating an employee under laws like the ADA.

Restraints on Competition

Measures or agreements that limit competition between businesses, often scrutinized under antitrust laws.

Free Competition

The condition in a market where businesses and individuals can operate and compete with minimal governmental interference or regulation.