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CAF-5 · Chapter 3 · Question 10 of 10

What is the recommended cost driver for assigning "Ordering costs"?

Test yourself: pick an answer

Reveal answer & explanation

Correct answer: A) Total number of customer's orders

Explanation

Based on the cost driver table in the study text, ordering costs are strictly driven by the "Total Number of customer's orders".

All 10 questions in Chapter 3Activity Based Costing MCQs with answers

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