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

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Definitions:

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used in economics to isolate the effect of one variable change in a model.

Causes

Factors or events that bring about an effect or a change.

Fallacy Of Composition

The incorrect belief that what is true for an individual member of a group is necessarily true for the group as a whole.

Economic Variable

An attribute that can take different values and influences economic behavior or outcomes, such as income, price, or interest rate.