In general, duration drivers are more accurate measures of the consumption of resources than transaction drivers

Question

Quizplus · Accepted Answer

Second-stage allocation involves assigning costs to a cost object that could not be directly assigned during the first stage of allocation. This is usually necessary when indirect costs are not easily traceable to a specific cost object. Duration drivers, which measure the amount of time that resources are consumed, are often used in second-stage allocation because they tend to be more accurate than transaction drivers. Therefore, it is true that duration drivers are more accurate measures of resource consumption than transaction drivers.

In General, Duration Drivers Are More Accurate Measures of the Consumption