A Measure of Frequency and Intensity of Demands Placed on Activities

question 27

Multiple Choice

A measure of frequency and intensity of demands placed on activities by cost objects 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:

Lead Time

The period between the initiation of a process and its completion, especially in manufacturing or project planning.

Memory Chips

Small hardware components used for storing data or code in electronic devices.

EOQ

Stands for Economic Order Quantity, a formula used to determine the optimal order size that minimizes total holding costs and ordering costs in inventory management.

Ordering Costs

Expenses incurred in placing and receiving orders from suppliers, including costs associated with ordering processing and inspections.