Which of the following items would be classified as a volume-related cost in an activity-based cost management (ABCM) system?
A) Indirect materials.
B) Production supervisor's salary.
C) Depreciation on factory building.
D) Research and development.

Question

Quizplus · Accepted Answer

Volume-related costs in an ABCM system are costs that vary with the level of production or sales volume. Indirect materials are typically consumed in proportion to the volume of production, making them a volume-related cost.

Which of the Following Items Would Be Classified as a Volume-Related