Questions
Single choice
Which of the following is most likely to be the cost driver for the production scheduling costs?
Options
A.a. Number of production runs
B.b. Number of order
C.c. Number of labour works
D.d. Number of outputs
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Step-by-Step Analysis
When considering what drives production scheduling costs, we look for the factor that most directly affects the number of scheduling decisions and setup activities.
Option a: Number of production runs. This tends to be the primary cost driver because each run often requires a setup, planning, and sequencing effort. More runs mean mo......Login to view full explanationLog in for full answers
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Similar Questions
Which of the following is an example of a duration driver?
Imagine a small company that bakes cupcakes. The cupcakes are made to be standardised size (about 60 grams each), however they are sold in orders of various quantities The company organised into three departments. For each department select the most appropriate cost driver to allocate that department's indirect costs: Department Description Cost driver? Mixing Wet and dry ingredients are combined and mixed together [ Select ] Number of customer orders Number of employees Number of cakes Baking Cakes are baked in ovens [ Select ] Number of employees Number of direct labour hours Number of machine hours Sales Cakes are sold to customers [ Select ] Number of machine hours Number of cakes Number of customer orders
Imagine a small company that bakes cupcakes. The cupcakes are made to be standardised size (about 60 grams each), however they are sold in orders of various quantities The company organised into three departments. For each department select the most appropriate cost driver to allocate that department's indirect costs: Department Description Cost driver? Mixing Wet and dry ingredients are combined and mixed together [ Select ] Number of cakes Number of employees Number of customer orders Baking Cakes are baked in ovens [ Select ] Number of direct labour hours Number of machine hours Number of employees Sales Cakes are sold to customers [ Select ] Number of cakes Number of customer orders Number of machine hours
Imagine a small company that bakes cupcakes. The cupcakes are made to be standardised size (about 60 grams each), however they are sold in orders of various quantities The company organised into three departments. For each department select the most appropriate cost driver to allocate that department's indirect costs: Department Description Cost driver? Mixing Wet and dry ingredients are combined and mixed together [ Select ] Number of employees Number of customer orders Number of cakes Baking Cakes are baked in ovens [ Select ] Number of employees Number of machine hours Number of direct labour hours Sales Cakes are sold to customers [ Select ] Number of cakes Number of machine hours Number of customer orders
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