Assume That AAA Company's Payroll and Human Resources Department Is

Assume that AAA Company's Payroll and Human Resources Department is a centralized service department serving all the various business units of the company. If AAA wished to assign the costs of the department to the company's various business units, which of the following would be the MOST appropriate cost driver or assignment basis?

A) Number of purchase orders
B) Number of employees
C) Number of reports prepared
D) Number of service hours provided

Correct Answer:

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