Which of the Following Is Not Likely to Be a Cost

question 176

Multiple Choice

Which of the following is not likely to be a cost driver of activities associated with determining product cost?

• A)Number of material requisitions
• B)Number of cost accountant's labor hours
• C)Number of product inspections
• D)Number of production orders

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Definitions:

Legal Fees

Payments made to attorneys or law firms for legal services rendered.

Title Insurance

An insurance policy that protects property buyers and lenders against losses from defects in titles.

Cash-Equivalent Price

The cash-equivalent price is the price of a service or asset if paid for in cash at the same time, as opposed to being financed.

Fair Value

An estimate of the market value of an asset or liability, based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.