Which of the following would probably not be a cost driver in a manufacturing environment?
A) Machine hours
B) Direct labor hours
C) Direct labor cost
D) Indirect labor hours

Question

Quizplus · Accepted Answer

Indirect labor hours are less likely to be a cost driver in a manufacturing environment because they are not directly associated with the production of specific goods. Cost drivers are typically factors that directly affect the cost of manufacturing, such as machine hours, direct labor hours, and direct labor costs, which are directly involved in the production process. Indirect labor hours, such as those spent on maintenance or supervision, do not have a direct impact on the production costs of specific products.

Which of the Following Would Probably Not Be a Cost