Which of the following is not a volume based cost driver?
A)labour hours
B)machine set up
C)machine hours
D)units of output

Question

Quizplus · Accepted Answer

Labour hours, machine hours, and units of output are all commonly used as volume based cost drivers because they represent the level of activity that drives costs in production. However, machine set up is not a volume based cost driver because it is not directly related to the quantity of output produced. Instead, it is a batch-level cost driver, which means that it relates to the number of batches or production runs that are necessary to produce a certain quantity of output.

Which of the Following Is Not a Volume Based Cost