Which of the following would be an example of a unit-based cost driver?
A) engineering orders
B) direct labor hours
C) inspection hours
D) material moves

Question

Quizplus · Accepted Answer

Unit-based cost drivers are those which vary with the number of units produced or services provided. Direct labor hours are an example of this as the more units produced, the more hours of labor will be required to produce them. Engineering orders, inspection hours, and material moves are not directly related to the number of units produced and therefore are not unit-based cost drivers.

Which of the Following Would Be an Example of a Unit-Based