Question

In: Accounting

Which item would a shipping department cost pool use as a cost driver?


Which item would a shipping department cost pool use as a cost driver? 

  • Number of sales orders 

  • Number of containers 

  • Number of units 

  • Number of machine hours

Solutions

Expert Solution

 Answer:

 Explanation:

 Number of Containers

 Because, shipping cost is charged based on weight of containers not on the basis of each unit in the container. Therefore, number of container would be a cost driver.


ekkarill92 answered 2 years ago
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