Many automated processes generate costs that have no cause and effectcause-and-effect relationship with volume-based cost drivers.

Question

Quizplus · Accepted Answer

Many automated processes, such as computer programs or robots, generate fixed costs that do not vary with changes in volume-based cost drivers. Therefore, these costs do not have a cause-and-effect relationship with the volume of production.

Many Automated Processes Generate Costs That Have No Cause and Effectcause-And-Effect