An Allocation Base That Causes Overhead Costs to Be Incurred

question 17

Multiple Choice

An allocation base that causes overhead costs to be incurred is called a(n) :

• A) revenue driver.
• B) predetermined driver.
• C) cost driver.
• D) applied driver.

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Definitions:

Offshore Source

Obtaining goods or services from another country, often with the intention of reducing costs.

Delivered Duty Paid

An international trade term where the seller is responsible for delivering goods at the buyer's doorstep, clearing customs, and paying all import duties.

Incoterm

A set of predefined commercial terms published by the International Chamber of Commerce relating to international commercial law.

Supplier Responsibilities

Supplier responsibilities involve obligations that vendors must fulfill, including delivering quality goods on time, adhering to contracts, and maintaining ethical practices.