Which of the Following Is a Volume-Based Cost Driver

question 53

Multiple Choice

Which of the following is a volume-based cost driver?

• A) Machine hours
• B) Material cost
• C) Direct labor hours
• D) All of these answers are correct

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Definitions:

Non-Numerical Values

Data that is not represented by numbers, often categorical or qualitative in nature, such as names or labels.

Quantitative

Relating to, measuring, or measured by the quantity of something rather than its quality, often involving statistical, mathematical, or numerical data analysis.

Measurement

Measurement is the process or the result of quantifying the characteristics of phenomena or objects, assigning numbers or symbols according to rules.

Ordinal Scale

A scale of measurement where the attributes being measured are ordered in terms of magnitude or importance, but the intervals between attributes are not necessarily uniform or known.