Which of the following is a batch-level cost driver?
A)Output units.
B)Number of engineering change orders.
C)Number of materials handling transactions.
D)Square feet of plant area occupied.
E)Number of employees.

Question

Quizplus · Accepted Answer

Batch-level cost drivers are those that vary with the number of batches produced, such as the number of materials handling transactions required for each batch. Choice A is a unit-level cost driver, choice B is a product-level cost driver, choice D is a facility-level cost driver, and choice E could be a unit-level or facility-level cost driver depending on the specific context.

Which of the Following Is a Batch-Level Cost Driver