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

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Definitions:

Informal Social Movements

Unofficial collective efforts by people to achieve a common goal, typically aimed at social change, which are less structured than formal organizations.

Privatize

The transfer of a business, industry, or service from public to private ownership and control.

Fad

A short-lived but enthusiastically embraced new cultural element.

Cultural Phenomenon

An aspect of culture that can be widely recognized and significantly influences society, including trends, habits, and patterns of behavior.