Question 1
Which of the following is the most appropriate cost driver for the purchasing department?
◦ Direct labor hours
◦ Machine hours
◦ Number of orders placed
◦ Direct labor cost
Question 2
Which of the following is the most appropriate cost driver for delivery of goods?
◦ Number of deliveries made
◦ Insurance on delivery trucks
◦ Depreciation on delivery trucks
◦ Wages of the delivery drivers