Assume That AAA Company's Payroll and Human Resources Department Is

question 115

Multiple Choice

Assume that AAA Company's Payroll and Human Resources Department is a centralized service department serving all the various business units of the company. If AAA wished to assign the costs of the department to the company's various business units, which of the following would be the MOST appropriate cost driver or assignment basis?

• A) Number of purchase orders
• B) Number of employees
• C) Number of reports prepared
• D) Number of service hours provided

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Definitions:

Mantra

A repeated phrase or slogan, often used in marketing to encapsulate and communicate a fundamental principle or idea of a brand.

Communication Process

The sequence of steps through which information is transmitted and received between individuals or entities.

Key Elements

Key elements refer to the fundamental components or essential factors that are crucial in achieving a specific goal or in the functioning of a system.

Boxes

Rigid or semi-rigid containers typically made of cardboard, plastic, or wood, used for storing, transporting, and protecting goods.