Transaction Drivers Count How Often an Activity Is Performed

question 43

Essay

Transaction drivers count how often an activity is performed.
Duration drivers represent the amount of time required to perform an activity.
Intensity drivers directly charge for the resources used each time an activity is performed.
Also,a weighted index approach might be used to simulate an intensity driver.
a.Give an example of each of the four types of drivers described above.
b.Explain when each of the four types of drivers should be used.
c.For each of the first three types of drivers,explain the assumptions about the activity and the object of the activity.
d.For each of the following activities identify a transaction driver,a duration driver,and an intensity driver.
Machine maintenance
Machine setup
Quality control
Material ordering
Production scheduling
Warehouse expense
Engineering design

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Definitions:

Employment History

A record of an individual's past work experiences, including positions held, responsibilities, and durations of employment.

Computer Technology

Refers to the comprehensive field involving computers and software used to manage and process information.

Professional Association

An organization dedicated to advancing a particular profession, protecting its integrity, and enhancing the professional skills of its members.

Leadership Team

A group of individuals at the top of an organization who are responsible for making strategic decisions and steering the company towards its goals.