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Costs drivers can typically be based on output volume or activity. Using volume based drivers to allocate indirect cost would generally result in more indirect
Costs drivers can typically be based on output volume or activity.
Using volume based drivers to allocate indirect cost would generally result in more indirect costs being allocated to high volume products.
All of the following are volume based cost drivers, except:
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Direct labour hours
Time taken to set-up machines
Units of output
Machine hours
Direct material quantity (kg)
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