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

---

Definitions:

Autonomy

The ability or right of an individual or entity to make their own decisions independently, free from external control or influence.

Leadership Role

A position or function in which an individual influences, guides, or directs others towards achieving collective goals.

Performance Evaluation

The systematic assessment of an employee's job performance, including the quality, quantity, and efficiency of work.

Rationalize

To attempt to explain or justify behavior or an attitude with logical reasons, even if these are not appropriate.