Which of the Following Items Would Not Be Used as the Cost

question 107

Multiple Choice

Which of the following items would not be used as the cost driver for a volume-related cost in an activity-based cost management (ABCM) system?

• A) Direct labor hours.
• B) Machine hours.
• C) Units produced.
• D) Square footage.

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Definitions:

CPI

Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, often used as an indicator of inflation.

CPI

Stands for Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.

CPI

The Consumer Price Index tracks the average variation in prices that urban consumers pay for a selection of consumer goods and services over a period of time.

Escalating Inflation

A situation where the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling, accelerates over a period.