Which of the following would likely be a suitable cost driver for the amount of direct materials used?
A)The number of units sold.
B)The number of direct labor hours worked.
C)The number of machine hours worked.
D)The number of units produceD.
E)The number of employees working in the factory.

Question

Quizplus · Accepted Answer

The amount of direct materials used would be best driven by the number of units produced, as the more units produced, the more materials will be used. The other options do not have a direct correlation with the amount of direct materials used.

Which of the Following Would Likely Be a Suitable Cost