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D. Tney afe expensea as Incurred 3, The Ruling Company assigns plant administration costs to the production departments based

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Answer #1

answer: B .purchasing department costs based on machine hours

would not be a good combination of common costs with an activity driver

explanation

option A: personnel department costs are allocated on the basis of number of employees is a good combination of common costs with an activity driver

option C: cafeteria costs based on meals served is a good combination of common costs with an activity driver

option D: warehouse costs based on the value of material stored is a good combination of common costs with an activity driver

option B :purchasing department costs are based on machine hours is NOT be a good combination of common costs with an activity driver ; purchasing department costs are based on number of orders placed is the good combination of common costs with an activity driver

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