Which of the following is an appropriate cost driver for issuance of purchase orders? Number of set ups Number of units Either number of units or number of purchase orders would be appropriate Number of purchase orders

Which of the following is an appropriate cost driver for issuance of purchase orders? Number of set ups Number of units Either number of units or number of purchase orders would be appropriate Number of purchase orders

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 1MC: If a company has four lots of products for sale, purchase 1 (earliest) for $17, purchase 2 (middle)...

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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

QUESTION 17

Which of the following is an appropriate cost driver for issuance of purchase orders?

Number of set ups

Number of units

Either number of units or number of purchase orders would be appropriate

Number of purchase orders

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