It Is Usually Difficult to Find Good Cost Driver (Cause-And-Effect

question 129

Multiple Choice

It is usually difficult to find good cost driver (cause-and-effect relationship) between ________ and a cost allocation base.

• A) unit-level costs
• B) batch-level costs
• C) product-sustaining costs
• D) facility-sustaining costs

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Definitions:

OEMs

Stands for Original Equipment Manufacturers, which are companies that produce parts and equipment that may be marketed by another manufacturer.

Differential Carriers

The housing that contains the differential gear mechanism, supporting and enabling the differential to divide torque between wheels.

Differential Carrier Housing

A component that encases the differential gear system, protecting it and supporting its function in a vehicle.

API GL-5

A specification for lubricating oils set by the American Petroleum Institute (API), indicating suitability for high-load, high-speed conditions.