In a machine-intensive production environment,the most accurate cost driver of manufacturing overhead costs is usually ________.

Question

Quizplus · Accepted Answer

In a machine-intensive production environment, the machines are the primary drivers of manufacturing overhead costs. Therefore, the best choice would be machine hours as the most accurate cost driver of manufacturing overhead costs. Direct labor costs and direct labor hours may be more appropriate cost drivers in labor-intensive production environments, while direct materials used may be a more appropriate cost driver in material-intensive production environments.

In a Machine-Intensive Production Environment,the Most Accurate Cost Driver of Manufacturing