Machine-hours is a more economically plausible cost driver of machine maintenance than number of direct manufacturing labor-hours.

Question

Quizplus · Accepted Answer

Machine maintenance costs are directly related to the amount of time that the machines are in use, which can be measured by machine-hours. On the other hand, direct manufacturing labor-hours may not be as closely related to machine maintenance costs as machine-hours, because some manufacturing tasks may not require the use of machines. Therefore, machine-hours is a more economically plausible cost driver of machine maintenance than number of direct manufacturing labor-hours.

Machine-Hours Is a More Economically Plausible Cost Driver of Machine