When Selecting a Volume-Based Cost Driver the Goal Is to?

Transcribed image text: When selecting a volume-based cost driver, the goal is to: 01. choose an input that varies in a pattern that is most similar to the pattern with which overhead costs vary.

What is a volume based cost driver?

Volume-based cost drivers assign costs through the run activities only. ... Ordering costs are a good example. Ordering costs change with the number of orders, not necessarily the number of units, or volume, ordered.

Does ABC only use volume based cost drivers?

The number of setups is the driver for the machine setup activity. Do ABC systems only include volume-based cost drivers to assign costs from each pool to products? Most ABC systems will include both volume-based and non-volume-based cost drivers.