An Activity Cost Driver Is

question 77

Multiple Choice

An activity cost driver is:

• A)a measure of the underlying activity that occurs in each activity cost pool.
• B)a measure of the volume of units produced or customers sold.
• C)a number of activities combined into one cost pool.
• D)the cost assigned to an activity.

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Definitions:

Labour Cost Per Unit

The total expense of labor required to produce a single unit of output, encompassing wages, benefits, and any other compensation.

Executive Intuition

The gut feelings or instincts of managers and executives that influence decision-making, often based on experience.

Starbucks Coffee

A global coffee company and coffeehouse chain known for its specialty coffee products and the promotion of a distinctive coffee culture.

Site Selection

The process of determining the best location for a business or facility based on criteria like demographics, cost, and logistics.