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

question 26

Multiple Choice

Which of the following would NOT be a volume-based cost driver in a conventional 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:

Coordination

The organization and alignment of activities, tasks, and resources to achieve a specific goal or objective efficiently.

Divisional Managers

Managers responsible for overseeing specific divisions within an organization, focusing on its performance and outcomes.

Profit Centers

Divisions or segments within a company that are directly responsible for generating its profits by making their own revenue and controlling their costs.

Corporate Executives

Senior management officials within a corporation, responsible for making major corporate decisions.