- 1 Marks
Question
Which of the following cost pools to cost drivers relationship is incorrect?
A. Set-up to number of set-ups
B. Material handling to number of material movement
C. Maintenance to number of maintenance
D. Depreciation of machine to number of machine hours
E. Material procurement to number of inspection
Answer
E. Material procurement to number of inspection
Explanation:
The correct cost driver for material procurement should be the number of purchase orders or receipts, not inspections.
- Tags: ABC, Cost Drivers, Cost Pools
- Level: Level 1
- Topic: Costing Techniques
- Series: MAY 2017
- Uploader: Kwame Aikins