Which of the Following Is the Most Appropriate Cost Driver

question 240

Multiple Choice

Which of the following is the most appropriate cost driver for allocating the cost of warranty services?

• A) number of employees
• B) number of materials purchased
• C) number of machine hours
• D) number of service calls

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Definitions:

Inductive

A reasoning process that involves making generalizations based on specific observations or cases.

Deductive

A logical process in which a conclusion is based on the concordance of multiple premises that are generally assumed to be true.

Qualitative

Pertaining to or concerning the quality of something rather than its quantity. This approach often involves non-numerical analysis of data in research.

Dependent Variable

A variable in an experiment or study whose changes are determined by the influence of one or more independent variables.