Which of the following would be an example of a unit-based cost driver?
A)engineering orders
B)direct labour hours
C)inspection hours
D)material moves

Question

Quizplus · Accepted Answer

Direct labour hours are directly related to units produced as it is the amount of time it takes to produce each unit. Therefore, it would be an example of a unit-based cost driver. Engineering orders, inspection hours, and material moves are not directly related to the number of units produced, so they would not be considered unit-based cost drivers.

Which of the Following Would Be an Example of a Unit-Based