Which of the Following Would Likely Be the Most Appropriate

question 33

Multiple Choice

Which of the following would likely be the most appropriate cost driver of electric power used by machines?

• A)Number of units.
• B)Machine size.
• C)Number of machine hours.
• D)Number of production runs.
• E)Purchase cost of machines.

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Definitions:

Direct Labor

The labor costs of workers who are directly involved in the production of goods or the provision of services.

Income Statement

A financial statement that shows a company's revenue and expenses over a specific period, culminating in the net profit or loss.

Production

The method of producing goods and services by combining work, materials, and technology.

Advertising Costs

Expenses associated with promoting products, services, or brands, typically incurred through campaigns across various media platforms.