Which Would Be an Appropriate Cost Driver for the Warranty

question 90

Multiple Choice

Which would be an appropriate cost driver for the warranty services activity?

• A) direct labor hours
• B) number of service calls
• C) number of purchase orders
• D) number of batches

---

Definitions:

Closure

The psychological tendency to seek a coherent and logical ending to an open issue or incomplete task.

Interposition

A visual cue for depth perception that occurs when one object partly blocks another; it can provide information about the relative positions and distances of objects in space.

Bottom-Up Processing

Information processing in which individual components or bits of data are combined until a complete perception is formed.

Top-Down Processing

Information processing in which previous experience and conceptual knowledge are applied to recognize the whole of a perception and thus easily identify the simpler elements of that whole.