Which of the Following Is the Most Appropriate Cost Driver

question 104

Multiple Choice

Which of the following is the most appropriate cost driver for maintaining parts inventory?

• A) Number of parts for a product
• B) Direct labor hours
• C) Sales dollars
• D) Number of setups

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Definitions:

Intestinal Lumen

The hollow part of the intestine through which digested food and secretions move.

Ions

Atoms or molecules that carry a net electric charge due to the loss or gain of one or more electrons.

Insulin

A hormone produced by the pancreas that regulates blood sugar levels by facilitating the uptake of glucose into tissues.

Glucose Transport

The process by which glucose is moved across cell membranes, typically involving specific transport proteins, to provide energy to cells.