When a company is labor-intensive,the cost driver that is probably least significant would be
A)direct labor hours.
B)direct labor dollars.
C)machine hours.
D)cost of materials useD.

Question

Quizplus · Accepted Answer

Machine hours would be the least significant cost driver in a labor-intensive company because their primary cost is labor. Materials may also be significant, but they are not included as an option in this question. Direct labor hours and dollars would be more significant cost drivers as they directly relate to the amount of labor required for production.

When a Company Is Labor-Intensive,the Cost Driver That Is Probably