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:

Long-term Strategies

Approaches or plans developed to achieve goals and objectives over an extended period, focusing on sustainable growth and development.

Cash Budgets

Detailed plans that estimate future cash receipts and disbursements, helping organizations manage their cash flow.

High-potential Ventures

Enterprises with a strong capacity for growth and the ability to generate significant returns.

Founders

Individuals who establish and begin businesses, organizations, or startups, taking on the risks and responsibilities of creating something new.