The cost driver that is a volume based cost driver is:
A) labour hours
B) number of set-ups
C) number of employees
D) all are volume based cost drivers

Question

Quizplus · Accepted Answer

Labour hours are directly correlated with the volume of production. The more production there is, the more labour hours are required. Number of set-ups and number of employees may not necessarily increase with higher volumes, therefore they are not solely volume based cost drivers.

The Cost Driver That Is a Volume Based Cost Driver