When a Company Is Choosing Between Different Types of Volume

question 53

Multiple Choice

When a company is choosing between different types of volume based cost drivers, which of the following factors suggest the use of outputs as a cost driver?
i. The company has only one product.
ii. The company is labour intensive.
iii. The company uses large quantities of direct materials.

• A) i
• B) i and iii
• C) ii
• D) ii and iii

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Definitions:

Goodwill

The positive reputation and supportive relationship a business or individual possesses, often considered as an intangible asset.

Organization

The structured arrangement or coordination of activities and resources in a group or entity to achieve specific goals.

Hard Copy

A physical version of a document, as opposed to a digital or electronic version.

Grammatical Errors

Mistakes made in the use of language's grammar rules, including errors in sentence structure, verb tense, agreement, and punctuation.