__________ explain changes in costs as units produced change.
A) Non-unit-level drivers
B) Activity based cost drivers
C) Unit-level drivers
D) All of these

Question

Quizplus · Accepted Answer

Unit-level drivers are the cost drivers that change in direct proportion to the change in the units produced. As the number of units produced increases, the unit-level costs also increase, and as the number of units produced decreases, the unit-level costs decrease. Therefore, unit-level drivers can explain changes in costs as units produced change. Non-unit-level drivers and activity-based cost drivers may also impact costs, but they do not necessarily vary in direct proportion to units produced.

__________ Explain Changes in Costs as Units Produced Change