Which of the following would likely be the most appropriate cost driver of electric power used by machines?
A)Number of units.
B)Machine size.
C)Number of machine hours.
D)Number of production runs.
E)Purchase cost of machines.

Question

Quizplus · Accepted Answer

Number of machine hours is the most appropriate cost driver for electric power used by machines as it directly relates to the amount of time the machines are consuming power. Other options such as number of units, machine size, number of production runs, and purchase cost of machines may indirectly impact electricity usage but are not as closely tied to it as machine hours.

Which of the Following Would Likely Be the Most Appropriate