Which of the following is not a correct pairing of estimated costs and its related cost driver?
A) Fuel expense for a delivery truck; miles driven.
B) Heating expense for a building; temperature to be maintained in the building.
C) Product design cost; number of design elements.
D) Sustainability cost in a manufacturing plant; machine-hours.

Question

Quizplus · Accepted Answer

Sustainability cost in a manufacturing plant is not typically driven by machine-hours. Machine-hours may be a cost driver for maintenance and repair costs or electricity costs, but not for sustainability costs. A more appropriate cost driver for sustainability costs could be the amount of waste generated or energy usage.

Which of the Following Is Not a Correct Pairing of Estimated