Machine-hours is a more economically plausible cost driver of machine maintenance than number of direct manufacturing labour-hours.

Question

Quizplus · Accepted Answer

Machine maintenance costs are more closely related to machine usage, which is best quantified by machine-hours. While direct manufacturing labor-hours can also affect machine maintenance costs (e.g. if workers are not properly trained in machine handling or if they cause damage to machines), it is less consistent and less direct than machine-hours. Therefore, using machine-hours as a cost driver for machine maintenance is more economically plausible.

Machine-Hours Is a More Economically Plausible Cost Driver of Machine