Asked by Jaquez Hoskins on Jun 26, 2024
Verified
Direct labour hours would be described as a volume-based cost driver for a clothing manufacturer.
Volume-Based Cost Driver
A factor that causes the cost of an activity or process to increase or decrease based on the volume of units produced or services rendered.
- Identify the determinants of cost and comprehend their significance in analyzing cost behavior.
Verified Answer
RS
Rawan ShakerJul 02, 2024
Final Answer :
True
Explanation :
Direct labour hours refers to the number of hours that workers spend on manufacturing products, which directly affects the cost of production. As such, it is a volume-based cost driver for a clothing manufacturer.
Learning Objectives
- Identify the determinants of cost and comprehend their significance in analyzing cost behavior.
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