Match the List of Representative Cost Drivers in the Right

question 215

Essay

Match the list of representative cost drivers in the right column to the list of functions in the left column.
$\begin{array}{|l|l|l|l|} \hline & \text { Function } & & \text { Representative Cost Driver } \\\hline \text { 1. } & \text { Purchasing } & \text { A. } & \text { Number of employees } \\\hline \text { 2. } & \text { Billing } & \text { B. } & \text { Number of shipments } \\\hline \text { 3. } & \text { Shipping } & \text { C. } & \text { Number of customers } \\\hline \text { 4. } & \text { Computer Support } & \text { D. } & \text { Number of invoices } \\\hline \text { 5. } & \text { Personnel } & \text { E. } & \text { Number of desktop computers } \\\hline \text { 6. } & \text { Customer Service } & \text { F. } & \text { Number of purchase orders }\\\hline \end{array}$
Required:
Match each business function with its representative cost driver.
$\begin{array}{|l|l|l|}\hline& \text { Function } & \text { Insert letter of appropriate driver (A through F) } \\\hline \text { 1. } & \text { Purchasing } & \\\hline \text { 2. } & \text { Billing } & \\\hline 3 . & \text { Shipping } & \\\hline 4 . & \text { Computer Support } & \\\hline 5 . & \text { Personnel } & \\\hline 6 . & \text { Customer Service } & \\\hline\end{array}$

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Definitions:

Ending Inventory

Ending inventory refers to the total value of unsold goods that a company holds at the end of an accounting period.

Goods In Transit

Items that have been shipped by a seller but not yet received by the buyer, which can be included in the inventory of either party depending on the shipping terms.

Purchase Discount

is a reduction in the price of goods bought, usually due to early payment by the buyer to the seller.

Perpetual Inventory System

A perpetual inventory system continuously tracks inventory levels and costs, updating records with each receipt or sale of goods.