Which of the Following Would Likely Be a Suitable Cost

question 15

Multiple Choice

Which of the following would likely be a suitable cost driver for the amount of direct materials used?

• A)The number of units sold.
• B)The number of direct labour hours worked.
• C)The number of machine hours worked.
• D)The number of employees working in the factory.
• E)The number of units produced.

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Definitions:

Short-form Merger

A merger between a parent company and its subsidiary where the parent absorbs the subsidiary without the need for approval by the shareholders of the subsidiary.

Subsidiary

A company that is completely or majority-owned by another company, known as the parent company.

Merger Plan

A detailed proposal for combining two or more companies into one entity, outlining the terms, conditions, and operational strategies post-merger.

Primary Liability

The direct responsibility of an entity or individual to pay a debt or damages without first requiring enforcement against another party.