Many automated processes generate costs that have no cause-and-effect relationship with volume-based cost drivers.

Question

Quizplus · Accepted Answer

This is correct as automated processes often have fixed costs or costs that are based on time, rather than the volume of goods or services produced. These costs may include maintenance, depreciation, and software licensing fees, which are not directly affected by changes in production levels.

Many Automated Processes Generate Costs That Have No Cause-And-Effect Relationship