Costs Drivers Can Be Based on Either Volume or Activity

question 2

Multiple Choice

Costs drivers can be based on either volume or activity.Which of the following is a volume based cost driver?

• A)number of invoices processed.
• B)time taken to set up machines.
• C)number of inspections undertaken.
• D)machine hours.

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Definitions:

Endorse

To give public approval or support to something or someone.

Holder In Due Course

A legal term referring to a person who acquires a negotiable instrument in good faith and has the right to collect it free from any defects.

Provide Value

The act of offering products, services or actions that are beneficial or of worth to customers, stakeholders, or society at large.

Requirements

Conditions or capabilities needed by a user to solve a problem or achieve an objective.