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

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Definitions:

Competitive Advantage

The unique attributes or circumstances that allow a company to produce goods or services better or more cheaply than its competitors.

Supply Chain

The network of all entities involved in producing and delivering a final product to the consumer, including manufacturers, suppliers, and distributors.

Uncertainty Reduction

Efforts or strategies to decrease the ambiguity and lack of information in decision-making or forecasting future events.

Market Trends

Patterns and tendencies observed in the market indicating the general direction in which a market or industry is moving.