The actual cost-driver rate measures _____________ capacity utilisation.

Question

Quizplus · Accepted Answer

The actual cost-driver rate measures the actual capacity utilization, which is the amount of resources used during a specified period. It is calculated by dividing the total cost incurred during the period by the actual level of activity. The budgeted cost-driver rate is based on estimated, rather than actual, capacity utilization. The estimated cost-driver rate is based on projections of future activity levels, and past cost-driver rates are not relevant to the current period.

The Actual Cost-Driver Rate Measures _____________ Capacity Utilisation