Which of the Following Is a Unit-Based Activity Driver

question 80

Multiple Choice

Which of the following is a unit-based activity driver?

• A)number of setups
• B)number of direct labour hours
• C)number of inspections
• D)number of material moves

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Definitions:

Accounts Receivable

Money owed to a business by its customers for goods or services that have been delivered but not yet paid for.

Credit Extension

The act of lending additional credit to borrowers or the period for which the credit is extended.

Receivables Financing

A form of financing where a company uses its accounts receivable as collateral to obtain a loan or advance, improving cash flow.

Variable Cost Per Unit

The cost that varies with the level of output or production, such as materials and labor, calculated on a per unit basis.