Which of the following is NOT true about a resource cost driver under Activity based costing? a. Sales orders are used to assign the cost of machines O b. Resource cost driver is used to assign the cost of the resource to an activity O c. Number of purchased orders placed will determine the cost of purchasing the materials O d. Number of times machines are set up will determine their cost of setting up

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Which of the following is NOT true about a resource cost driver under Activity based costing?
O a. Sales orders are used to assign the cost of machines
O b. Resource cost driver is used to assign the cost of the resource to an activity
OC. Number of purchased orders placed will determine the cost of purchasing the materials
O d. Number of times machines are set up will determine their cost of setting up
Transcribed Image Text:Which of the following is NOT true about a resource cost driver under Activity based costing? O a. Sales orders are used to assign the cost of machines O b. Resource cost driver is used to assign the cost of the resource to an activity OC. Number of purchased orders placed will determine the cost of purchasing the materials O d. Number of times machines are set up will determine their cost of setting up
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