Which of the Following Is Not Likely to Be a Cost

question 176

Multiple Choice

Which of the following is not likely to be a cost driver of activities associated with determining product cost?

• A)Number of material requisitions
• B)Number of cost accountant's labor hours
• C)Number of product inspections
• D)Number of production orders

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Definitions:

Manufacturing Overhead

All indirect costs related to the production process, including salaries, maintenance, and utilities, not directly attributable to specific units produced.

Unit Product Cost

The total cost to produce one unit of a product, calculated by dividing the total production costs by the number of units produced.

Direct Labor-hours

The total hours of labor directly involved in manufacturing a product or providing a service, typically used as a basis for allocating overhead costs.

Manufacturing Overhead

All indirect costs associated with manufacturing, like utility costs for the factory, depreciation of manufacturing equipment, and factory management salaries.