Volume - Based
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Volume – based cost drivers Traditional system use only volumebased cost drivers. It assume that a product’s consumption of overhead resource is directly related to unit produced. This cost driver are appropriate for measuring the consumption of exp. Such as, machine energy costs, depreciation related to machine usage.
Non-volume-based cost drivers It related activities are not performed each time a unit of the product or service is produced. e.g. setting up a machine and reengineering product.
Non-volume-based cost drivers It related activities are not performed each time a unit of the product or service is produced. e.g. setting up a machine and reengineering product.
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