The number of inspections,number of service calls and number of batches are all examples of ________.
A) direct labor costs
B) service costs
C) cost drivers
D) allocable costs

Question

Quizplus · Accepted Answer

The number of inspections, service calls, and batches are all factors that drive costs, known as cost drivers. These factors impact the overall cost of production and influence how much the company must spend to create its products or provide its services. Direct labor costs refer to the cost of the labor used to create a product, while service costs are the expenses associated with providing a service. Allocable costs are indirect costs that cannot be traced back to a specific product or service and are allocated to different departments or products based on a predetermined formula.

The Number of Inspections,number of Service Calls and Number of Batches