Which of the following items would not be used as the cost driver for a volume-related cost in an activity-based cost management (ABCM) system?
A) Direct labor hours.
B) Machine hours.
C) Units produced.
D) Square footage.

Question

Quizplus · Accepted Answer

Square footage is typically used as a cost driver for facility-related costs, not volume-related costs. Volume-related costs are more directly associated with production activities, which are better represented by direct labor hours, machine hours, or units produced.

Which of the Following Items Would Not Be Used as the Cost