A Measure of the Quantity of Resources Consumed by an Activity

question 4

Multiple Choice

A measure of the quantity of resources consumed by an activity is:

• A)Quantity driver.
• B)Resource consumption cost driver.
• C)Not a cost driver.
• D)Activity consumption cost driver.
• E)Consumption cost driver.

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Definitions:

Lowest Gross Profit

The smallest amount of profit generated from selling goods or services, calculated by subtracting the cost of goods sold from sales revenue.

Raw Materials

Basic substances in their natural, modified, or unprocessed states used in the production or manufacturing of goods.

Operating Expense

The costs associated with the day-to-day operations of a business, excluding the costs of goods sold.

Manufacturing Process

Involves the steps through which raw materials are transformed into a final product, applying various techniques and methods.