Which of the Following Items Would Not Be Used as the Cost

question 87

Multiple Choice

Which of the following items would not be used as the cost driver for a volume-level cost in an activity-based cost management (ABM) system?

• A) Direct labor hours.
• B) Machine hours.
• C) Units produced.
• D) Square footage.

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Definitions:

Intermediate Range

Pertains to a spectrum or level that lies between the shortest and longest extremes, often used in the context of distances, durations, or magnitudes.

Aggregate Supply Curve

Represents the total supply of goods and services that firms in an economy plan on selling during a specific time period, at different price levels.

Classical Long-Run

In economics, it denotes a period where all factors of production and costs are variable, allowing full adjustment to market changes.

Aggregate Supply Curve

A graph that shows the relationship between the overall price level in an economy and the total output produced by firms.