Which of the Following Cost Categories Would Most Likely Use

question 129

Multiple Choice

Which of the following cost categories would most likely use machine hours as its activity driver?

• A)personnel
• B)maintenance
• C)purchasing
• D)both a and b

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Definitions:

Debt Financing

Raising capital through borrowing money to be repaid at a later date, typically with interest.

Financial Risk

The prospect of losing capital in an investment or business venture.

Equity Risk

The risk of loss associated with fluctuations in the stock market or the volatile performance of individual stocks.

Capital Structure Policy

A company's decisions and strategies regarding the mix of its financing sources (debt and equity) to fund its operations and growth.