The preferred cost drivers for fixed-cost pools and variable-cost pools are _____.
A)capacity available and capacity used, respectively
B)capacity available and capacity available, respectively
C)capacity used and capacity available, respectively
D)capacity used and capacity used, respectively

Question

Quizplus · Accepted Answer

The preferred cost drivers for fixed-cost pools are capacity available because fixed costs do not change with the level of production or services provided. For variable-cost pools, the preferred cost drivers are capacity used, as variable costs fluctuate with the level of production or services.

The Preferred Cost Drivers for Fixed-Cost Pools and Variable-Cost Pools