Manufacturing overhead costs can have more than one cost driver.

Question

Quizplus · Accepted Answer

Manufacturing overhead costs, such as rent, utilities, and equipment maintenance, may have multiple cost drivers that influence their total cost. For example, rent costs may vary based on the size of the facility and its location, while utilities costs may depend on the amount of energy consumed by the production process. Therefore, it is possible for a single manufacturing overhead cost to have more than one cost driver.

Manufacturing Overhead Costs Can Have More Than One Cost Driver