For each of the following activities, select the most appropriate cost driver. E

Question

For each of the following activities, select the most appropriate cost driver. Each cost driver may be used only once.

1. Pay Vendors

2. Receive material deliveries

3. Inspect raw materials

4. Plan for purchases of raw materials

5. Packaging

6. Supervision

7. Employee training

8. Operating machines

9. Machine maintenance

10. Opening accounts at a bank

Options:

# of checked issues

# of machine hours

# of deliveries

# of classes offered

# of different kinds of raw materials

# of new customers

# of units of raw materials received

# of employees

# of customer orders

# of maintenace hours

Explanation / Answer

1 Pay Vendors # of units of raw materials received 2 Receive material deliveries # of classes offered 3 Inspect raw materials # of different kinds of raw materials 4 Plan for purchases of raw materials # of customer orders 5 Packaging # of deliveries 6 Supervision # of employees 7 Employee training # of employees 8 Operating machines # of maintenace hours 9 Machine maintenance # of machine hours 10 Opening accounts at a bank # of checked issues

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