Which of the following is NOT likely to be a cost driver of activities associated with determining product cost?
A) Number of accountant's labour hours
B) Number of material requisitions
C) Number of product inspections
D) Number of production orders

Question

Quizplus · Accepted Answer

Cost drivers are factors that cause costs to change. In the context of determining product cost, activities such as material requisitions, product inspections, and production orders are directly related to the production process and can drive costs. Accountant's labour hours, while a cost, are not directly driving the costs associated with the production activities mentioned; they are more related to the administrative aspect of cost accounting rather than a direct driver of production costs.

Which of the Following Is NOT Likely to Be a Cost