Which of the Following Would Be Considered a Non-Volume-Based Cost

question 109

Multiple Choice

Which of the following would be considered a non-volume-based cost driver?

• A)Number of units produced
• B)Number of batches
• C)Number of machine hours
• D)Direct materials cost

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Definitions:

Accounting Purposes

The rationale or objective behind various accounting practices, often to comply with regulatory requirements or to provide clear financial information.

Lease Term

A fixed period during which a lessee has the right to occupy or use a leased asset.

Financial Lease

A type of lease where the lessee has use of an asset through its useful life, often with ownership transferring at the end.

Fully Amortized

Refers to a loan where the principal and interest are paid off completely over the loan term.