Cost Drivers Can Be Based on Either Volume or Activity

question 40

Multiple Choice

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

• A) Number of inspections undertaken.
• B) Number of invoices processed.
• C) Units of output.
• D) Time taken to set up machines.

---

Definitions:

Platform Relevance

The degree to which a digital or physical platform remains significant and useful to its intended audience or users, often in the context of evolving market dynamics.

Personal Interaction

Direct, face-to-face communication between individuals, which can enhance understanding, strengthen relationships, and facilitate collaboration.

Transparency

The practice of being open, honest, and straightforward about various activities, ensuring accessibility of information to stakeholders.

Altruism

The selfless concern for the well-being of others, often manifested through actions that prioritize others' interests above one's own.