Which type of cost drivers is most appropriate for most automated processes?
A) Volume-based drivers
B) Activity-based drivers
C) Direct labor-based drivers
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

Activity-based drivers are most appropriate for most automated processes as they allow for a more detailed and accurate allocation of costs to the processes based on the specific activities being performed. Volume-based drivers may not capture the true cost drivers of an automated process, while direct labor-based drivers may not be applicable since automation reduces the reliance on direct labor.

Which Type of Cost Drivers Is Most Appropriate for Most