Which would be a cost driver for a facility-level activity?
A) Number of setups
B) Number of product designs
C) Square footage
D) Number of purchase orders

Question

Quizplus · Accepted Answer

Cost drivers for facility-level activities depend on the size and capacity of the facility. Square footage is a direct measure of the space needed to maintain and operate the facility, and thus is a key cost driver for facility-level activities. The other options (A,B,D) are more closely associated with activity-level or unit-level activities.

Which Would Be a Cost Driver for a Facility-Level Activity