What are the two classifications of activity drivers?
A) right and wrong
B) exact and inexact
C) inputs and outputs
D) unit-level and non-unit-level

Question

Quizplus · Accepted Answer

The two classifications of activity drivers are unit-level and non-unit-level. This is because activity drivers are used to allocate overhead costs to products or services based on the level of activity required to produce them. Unit-level activity drivers are used to allocate overhead costs to individual units of output, while non-unit-level activity drivers are used to allocate overhead costs to groups of units or to the organization as a whole. This categorization is important because it helps managers make more accurate cost allocations and understand the cost behavior of different types of activities.

What Are the Two Classifications of Activity Drivers