Which of the Following Would Be an Example of a Unit-Based

question 100

Multiple Choice

Which of the following would be an example of a unit-based cost driver?

• A)engineering orders
• B)direct labour hours
• C)inspection hours
• D)material moves

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Definitions:

Shares

Units of ownership interest in a corporation or financial asset that provide a share in the corporation's profits and a claim on its assets.

Paid-In Capital

The total amount of money raised by a company through the sale of shares to the shareholders, including additional amounts over the nominal value.

Issue Price

The price at which new securities are sold to the public or investors by the issuer when they are first offered.

Par

The face value of a security as stated by its issuer, distinct from its market value.