Which of These Are Possible Cost Drivers Under Activity-Based Costing

question 10

Multiple Choice

Which of these are possible cost drivers under activity-based costing?

• A)Number of deliveries.
• B)Hours of storage of raw materials.
• C)Number of set ups of machinery.
• D)All of the above.

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Definitions:

Human Capital

The combined abilities, expertise, and non-physical assets belonging to people that can generate economic benefits for themselves, their place of work, or their local area.

Natural Resources

Environmental assets such as minerals, woodlands, bodies of water, and cultivable land, available in nature and exploitable for economic growth.

Financial Institutions

Organizations that provide financial services, such as banks, insurance companies, and stock exchanges.

Capital Infrastructure

Fundamental facilities and systems serving a country, city, or area, including transportation, communications, sewage, water, and electric systems, that are necessary for economic activity.