Under ABC, cost drivers are separated into unit-based and non-unit-based drivers.

Question

Quizplus · Accepted Answer

This is true. Unit-based cost drivers are those that vary with the production or service output, such as direct materials and labor, while non-unit-based cost drivers are those that do not vary with output levels, such as setup costs or batch size. ABC separates these cost drivers to more accurately assign costs to products or services.

Under ABC, Cost Drivers Are Separated into Unit-Based and Non-Unit-Based