Multiple Choice
The choices below depict five costs of Garfield Industries and a possible driver for each cost. Which of these choices likely contains an inappropriate cost driver?
A) Gasoline consumed; number of miles driven.
B) Manufacturing overhead incurred in a heavily automated facility; direct labor hours.
C) Sales commissions; gross sales revenue.
D) Building maintenance cost; building square footage.
E) Human resources department cost; number of employees.
Correct Answer:
Verified
Correct Answer:
Verified
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