Fisher and Caplan Company Has Identified Eight Employees Who Are

Multiple Choice

Fisher and Caplan Company has identified eight employees who are in some way involved with obtaining the raw materials used in the firm's products and has grouped these individuals into a cost pool. These employees' activities range from ordering materials, taking receipt of incoming shipments, and preparing materials for use on the factory floor. Of the following events, which would be a reasonable activity driver for the employees in this cost pool?

A) Labor hours
B) Production runs
C) Machine setups
D) Receipts of raw material shipments