For a manufacturer,measures of volume may include:
A) Number of units produced.
B) Number of square feet occupied.
C) Amount of direct materials used in production.
D) Both number of units produced and amount of direct materials used in production are correct.

Question

Quizplus · Accepted Answer

The number of units produced is a direct measure of the volume of the manufacturer's output. Similarly, the amount of direct materials used in production is also a direct measure of the manufacturing volume as more output will require more raw materials. The number of square feet occupied is not necessarily a direct measure of volume and may not always be a good indicator of output levels.

For a Manufacturer,measures of Volume May Include