Which of the following quantities is an example of an activity driver in activity-based costing?
A)number of direct labor hours
B)number of labor transactions
C)number of machine hours
D)all of these

Question

Quizplus · Accepted Answer

Activity drivers are the factors that cause costs to be incurred in an activity. Number of direct labor hours, number of labor transactions, and number of machine hours are all examples of activity drivers as they directly influence the level of activity in a production process.

Which of the Following Quantities Is an Example of an Activity