________ and ________ are typically the measures of volume of activity in traditional volume-based cost systems.
A)Practical capacity; products sold
B)Direct labor hours; practical capacity
C)Direct labor hours; machine hours
D)Square footage; machine hours

Question

Quizplus · Accepted Answer

Direct labor hours and machine hours are commonly used as measures of activity in traditional volume-based cost systems. These measures are used to allocate overhead costs to products or services based on the amount of time they use for production tasks. Practical capacity and products sold are not typically used as direct measures of activity in cost accounting. Square footage may be used in some industries, but it is less common than direct labor hours or machine hours.

________ and ________ Are Typically the Measures of Volume of Activity

and Are Typically the Measures of Volume of Activity