The cost driver that is a volume based cost driver is:
A) number of units
B) number of set-ups
C) number of employees
D) all are volume based cost drivers

Question

Quizplus · Accepted Answer

The number of units is a volume-based cost driver because it directly correlates with the volume of production or services provided. The more units produced, the higher the costs associated with production. Choices B and C are not directly tied to volume in the same way.

The Cost Driver That Is a Volume Based Cost Driver