For a labour-intensive manufacturing operation,which of the following would be the most appropriate activity driver?
A)machine hours
B)direct labour hours
C)number of employees
D)units of output

Question

Quizplus · Accepted Answer

In a labour-intensive manufacturing operation, the amount of time spent on direct labour is usually the most significant cost driver. Therefore, the most appropriate activity driver would be direct labour hours, as it can accurately reflect the amount of labour input required for the production of the goods.

For a Labour-Intensive Manufacturing Operation,which of the Following Would Be