Which of the Following Is a Volume-Based Cost Driver

question 53

Multiple Choice

Which of the following is a volume-based cost driver?

• A) Machine hours
• B) Material cost
• C) Direct labor hours
• D) All of these answers are correct

Calculate and understand selling prices based on manufacturing costs and markup percentages.

Identify how direct labor hours and machine hours are used as the allocation base for applying overhead.

Understand the financial implications of job-order costing decisions on pricing, costing, and overhead allocation.

Understand job-order costing systems and calculate predetermined overhead rates.

---

Definitions:

Controversy

A prolonged public dispute or debate marked by differences in opinion or strongly opposing views.

Press Freedom

The principle that communication and expression through various media, including print and electronic, should be considered a right to be exercised freely.

Ferdinand Tönnies

A German sociologist known for his analysis of social groups and the distinction between community (Gemeinschaft) and society (Gesellschaft).

Opinion Leaders

Individuals who have an influence over public opinion due to their authority, knowledge, position, or relationship with their audience.