Which of the Following Cost Drivers Would NOT Be Appropriate

question 91

Multiple Choice

Which of the following cost drivers would NOT be appropriate for the customer services activity of the value chain?

• A)number of service calls
• B)hours spent servicing products
• C)number of engineering hours by research and development staff
• D)number of service call workers

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Definitions:

Compounded Semi-annually

Interest calculated on the initial principal and the interest that has been added on a bi-annual basis.

Inflation Rate

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.

Hourly Rate

The amount of money paid or earned for each hour of work.

Equivalent

Equal in value, amount, function, meaning, etc.