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8:26 PM * 51%-- 1. question 28 Home Insert Draw Layout Review View Calibri Regular (E 11 B I U A. ' A4 2-28 Identifying
8:26 PM * 51%-- 1. question 28 Home Insert Draw Layout Review View Calibri Regular (E 11 B I U A. ' A4 2-28 Identifying Cost Drivers The following list identifies several potential cost drivers for a manufacturing company that makes eight products. The company uses a JIT production system so it stores finished products for a very limited time. The eight products vary substantially in size from small (plastic casings for pens) to large (plastic casings for truck instrument panels). The company uses order-processing labor to process all orders from customers. Number of setups Setup time -Square feet . Cubic feet -Cubic feet weeks . Number of orders . Number or order line items 5. What driver should the company use for order processing cost? All orders are similar in terms of types of products ordered and it takes about the same time to process each type of product. 6. What driver should the company use for order processing cost if orders vary substantially in terms of types of products ordered and it takes about the same time to process each type of product
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