Which of the Following Is an Appropriate Cost Driver for Allocating

question 22

Multiple Choice

Which of the following is an appropriate cost driver for allocating indirect costs to a human resources department in a service company?

• A) Number of employees
• B) Number of customers
• C) Square footage of office space
• D) Either number of employees or square footage of office space depending on the nature of the indirect cost

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Definitions:

Career Stage Model

A framework that outlines the various phases an individual goes through in their professional life, from entry-level positions to retirement.

Establishment Stage

A phase in one's career or the lifecycle of an organization during which stability and growth are pursued after initial achievements or setup.

Person's Career

The progression and actions of an individual's professional life, including job experiences, education, and advancements.

Advancement Stage

Describes a phase in career development or project progress where individuals or teams experience growth or move forward to reach higher levels.