Activities and Cost Drivers

For each of the following activities, select the most appropriate cost driver. Each cost driver may be used only once.

Activity

1.Pay vendors

2.Receive material deliveries

3.Inspect raw materials

4.Plan for purchases of raw materials

5.Packaging

6.Supervision

7.Employee training

8.Operating machines

9.Machine maintenance

10.Opening accounts at a bank

Cost Driver

a.Number of different raw material items

b.Number of classes offered

c.Number of machine hours

d.Number of employees

e.Number of maintenance hours

f.Number of units of raw materials received

g.Number of new customers

h.Number of deliveries

i.Number of checks issued

j.Number of customer orders