Which of the following costs is likely to be driven by machine usage?
A) Factory insurance
B) Depreciation on factory building
C) Factory utilities
D) Factory rent

Question

Quizplus · Accepted Answer

Factory utilities, such as electricity and water, are typically driven by machine usage. As machines are used more, they require more electricity and water to operate. Therefore, the cost of factory utilities is likely to increase as machine usage increases. The other options (factory insurance, depreciation on factory building, and factory rent) are unlikely to be driven by machine usage.

Which of the Following Costs Is Likely to Be Driven