Which type of cost driver is most appropriate for automated processes?
A) Volume-based drivers
B) Activity-based drivers
C) Direct labor-based drivers
D) All of these answers are correct

Question

Quizplus · Accepted Answer

Automated processes are often driven by activity-based drivers since the cost of the process is directly related to each activity required to complete it. Volume-based drivers may not accurately capture the cost of automated processes, while direct labor-based drivers may not be relevant since automated processes require minimal direct labor.

Which Type of Cost Driver Is Most Appropriate for Automated