MNK Is a Large Public Company That Employs Numerous Accounts

question 81

Multiple Choice

MNK is a large public company that employs numerous accounts receivable clerks. Their jobs involve processing invoices and keeping the accounting records updated. Which of the following is the most likely cost driver for the accounts receivable activity cost pool?

• A) Number of journal entries
• B) Number of product lines produced by MNK
• C) Number of invoices
• D) Average dollar amount for each credit sale

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Definitions:

Variable Ratio Schedule

A reinforcement schedule in which the number of responses required for a reward varies, often leading to high and steady rates of response.

Commission

A form of payment or an instruction to perform a particular task or service, often based on a percentage of sales made.

Sale

The exchange of a commodity for money; the action of selling something.

Organizational Learning

The process through which an organization acquires, develops, and transfers knowledge to adapt and improve its effectiveness.