Direct labor cost (DLC)and direct labor hours (DLH)are examples of volume-related cost drivers in the cost hierarchy.

Question

Quizplus · Accepted Answer

DLC and DLH are both examples of volume-related cost drivers because they are directly influenced by the level of activity or output. As volume increases, more direct labor is needed, resulting in higher DLC and DLH. Therefore, both DLC and DLH change as volume changes.

Direct Labor Cost (DLC)and Direct Labor Hours (DLH)are Examples of Volume-Related