The main volume related driver of indirect costs in a highly mechanised operation is most likely to be:
A)direct labour dollars.
B)direct labour hours.
C)machine maintenance dollars.
D)machine hours.

Question

Quizplus · Accepted Answer

In a highly mechanized operation, the use of machines is the main factor driving indirect costs. Machine maintenance, repairs, and depreciation costs are directly related to the number of machine hours used. Therefore, the most appropriate choice is D) machine hours.

The Main Volume Related Driver of Indirect Costs in a Highly