Which of the following would be the least likely cost driver for an activity such as the repair and maintenance of factory equipment?
A) Machine hours
B) Direct labour hours
C) Number of units produced
D) Number of new product designs

Question

Quizplus · Accepted Answer

The number of new product designs is not directly related to the repair and maintenance of factory equipment. The other options - machine hours, direct labour hours, and number of units produced - are all directly related to the wear and tear on factory equipment and would therefore be more likely cost drivers.

Which of the Following Would Be the Least Likely Cost