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:

Awareness

The state of being conscious of something, including feelings, perceptions, or facts.

Social Exchange Theory

A psychological theory that explains social behavior in terms of an exchange process, aiming to maximize benefits and minimize costs in relationships.

Altruistic Behavior

Actions intended to benefit others without expecting personal gain.

Costs And Benefits

Costs and benefits refer to the negative and positive outcomes, respectively, that are considered when making decisions or evaluating actions and their impacts.