Which of the Following Would Be the Most Appropriate Cost

question 107

Multiple Choice

Which of the following would be the most appropriate cost driver for delivery of goods?

• A)Wages of the delivery drivers
• B)Number of deliveries made
• C)Depreciation on delivery trucks
• D)Insurance on delivery trucks

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Definitions:

Exchange Differences

Financial discrepancies that arise from converting transactions made in foreign currencies into the reporting currency.

Revaluation

The process of adjusting the book value of a capital asset to reflect its current market value.

Interest Paid

The amount of money paid by a borrower to a lender over a specified time period for the use of borrowed funds.

Foreign Exchange Risk

The potential for loss due to fluctuations in foreign exchange rates affecting the value of foreign currency-denominated transactions.