If a hospital cafeteria is the activity to receive indirect cost allocation for the year, cost driver(s)

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If a hospital cafeteria is the activity to receive indirect cost allocation for the year, cost driver(s) for the ABC method that seem reasonable may be:

1 – Number of cafeteria employees
2 – Number of meals
3 – Hospital patient volume

(a) 1

(b) 2

(c) 3

(d) 1 and 2

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Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

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