Which of the Following Would NOT Be a Volume-Based Cost

question 87

Multiple Choice

Which of the following would NOT be a volume-based cost driver in a traditional costing system?

• A) Quantity of direct material
• B) Factory floor area in square metres
• C) Direct labour hours
• D) Machine hours

Evaluate the impact of investment decisions on a company's financial performance measures.

Appreciate the influence of operational decisions on inventory management and manufacturing cycle efficiency.

Understand the factors that contribute to the threat of new competitors entering a market, including barriers to entry.

Grasp the dynamics of supplier and buyer power in industry competition.

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Definitions:

Confirmation Bias

The tendency to seek information that supports one’s beliefs while not pursuing disconfirming information.

External Attribution

The process of attributing the cause of a person's behavior to situational factors outside the person.

Self-Serving Bias

The tendency to attribute one’s successes to personal factors and one’s failures to situational factors.

Fundamental Bias

An inherent inclination or prejudice that consistently affects judgement or decision-making.