Asked by Damario Thompson on May 27, 2024

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Which of the following are common production volume measures?
i. Direct labour hours.
ii. Machine hours.
iii. Direct material cost.

A) i and ii
B) ii and iii
C) i and iii
D) iii only

Production Volume Measures

Metrics or units of measurement used to gauge the quantity of products created by a company within a specific period.

Direct Labour Hours

The total hours worked by employees directly involved in the production process, not including hours worked by supervisory or maintenance personnel.

Machine Hours

A measure of production time, representing the hours a machine is operated in the manufacturing of a product.

  • Acquire knowledge about the impact of cost drivers on Activity-Based Costing and methods for identifying appropriate cost drivers for distributing costs.
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Nathalia VelezMay 28, 2024
Final Answer :
A
Explanation :
Direct labour hours and machine hours are commonly used as production volume measures because they directly relate to the amount of time it takes to produce a unit of product. Direct material cost is not a production volume measure as it does not directly relate to the amount of product produced.