Which of the following cost categories would most likely use machine hours as its activity driver?
A)personnel
B)maintenance
C)purchasing
D)both a and b

Question

Quizplus · Accepted Answer

Machine hours is a common activity driver used to allocate costs to maintenance activities as it measures the amount of time each machine is in use and thus incurs costs related to repairs and maintenance. Personnel and purchasing costs are more likely to be driven by other activity drivers such as salaries or purchase orders.

Which of the Following Cost Categories Would Most Likely Use