Which of the following quantities is an example of an activity driver in activity-based costing?
A) number of setups
B) number of orders placed
C) number of machine hours
D) all of these

Question

Quizplus · Accepted Answer

An activity driver is a measure of the output of an activity that causes the consumption of resources. All of the options provided are activity drivers commonly used in activity-based costing. The number of setups and orders placed are examples of transaction-based activity drivers, while the machine hours represent duration-based activity drivers.

Which of the Following Quantities Is an Example of an Activity