Which of the following items would not be used as the cost driver for a volume-level cost in an activity-based cost management (ABM)system?
A) Direct labor hours.
B) Machine hours.
C) Units produced.
D) Square footage.

Question

Quizplus · Accepted Answer

Square footage is not typically used as a cost driver for volume-level costs in an ABM system. Direct labor hours, machine hours, and units produced are all more commonly used as cost drivers for volume-level costs.

Which of the Following Items Would Not Be Used as the Cost