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Management · Q260

Management Accounting

Graduate and Post Graduate · Management · question 260

Q260

In manufacturing companies, revenue and cost drivers are categorized under

A.
variable costs
B.
costs of goods sold
C.
number of units sold
Answer
D.
all of above

Answer: Option C

Solution

Answer: Option C
Solution:
In manufacturing companies, revenue and cost drivers are categorized under number of units sold. Revenue and cost drivers are the individual elements that make up those gross numbers. They are different in each business model. Most managers usually can identify specific drivers, but they often don't use them as key management tools.