Which of the Following Would Be the Most Appropriate Activity

question 57

Multiple Choice

Which of the following would be the most appropriate activity and cost drivers pairing for a Purchasing Department?

• A) Activity: Placing orders - Possible Cost Driver: Number of orders
• B) Activity: Placing orders - Possible Cost Driver: Number of new hires
• C) Activity: Placing orders - Possible Cost Driver: Frequency of audits
• D) Activity: Placing orders - Possible Cost Driver: Employee turnover rate

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Definitions:

Toyota Production System

A manufacturing philosophy that focuses on continuous improvement and elimination of waste, promoting efficiency and just-in-time production.

Creativity

The ability to produce original and unusual ideas, or to make something new or imaginative.

Kanban System

A lean manufacturing tool that uses visual cues to signal the need to move materials or parts within a production process.

Variability

The extent to which data points in a distribution or set differ from each other and from the mean or average.