Which of the following would likely be a suitable cost driver for the amount of direct materials used?
A) The number of units sold.
B) The number of direct labor hours worked.
C) The number of machine hours worked.
D) The number of units produced.
E) The number of employees working in the factory.

Question

Quizplus · Accepted Answer

The number of units produced is a suitable cost driver for the amount of direct materials used because the quantity of materials required typically varies directly with the number of units being produced.

Which of the Following Would Likely Be a Suitable Cost