Which of the following would be the least likely cost driver for an activity such as the usage of factory supplies?
A) Machine hours
B) Number of engineering hours
C) Direct labor hours
D) Number of units produced

Question

Quizplus · Accepted Answer

The usage of factory supplies is not directly related to engineering hours, so it is the least likely cost driver. On the other hand, machine hours, direct labor hours, and number of units produced are all common cost drivers for activities such as factory supplies.

Which of the Following Would Be the Least Likely Cost