Which of the Following Would Be the Least Likely Cost

question 10

Multiple Choice

Which of the following would be the least likely cost driver for an activity such as the repair and maintenance of factory equipment?

• A) Machine hours
• B) Direct labor hours
• C) Number of units produced
• D) Number of new product designs

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Definitions:

Job Order Costing

An accounting method used to track costs and evaluate the profitability of custom jobs by accumulating the costs associated with a specific customer order.

Home Construction

The process of building residential homes, including planning, design, construction, and sale of new homes.

Prime Costs

The combination of direct materials and direct labor costs.

Direct Labor

The cost of wages for employees who are directly involved in the production of goods or services.