Question 1

**Section A**

DataStream, a tech startup providing cloud hosting, is implementing Activity-Based Costing (ABC). They have identified 'Server Maintenance' and 'Data Transfer' as key cost pools.

Which of the following would be appropriate cost drivers for these activities? (Select ALL that apply)

Accepted Answer

A cost driver is the factor that causes the cost of an activity to increase. Match the driver to the specific IT activities mentioned.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Selecting traditional volume-based drivers (like direct labor hours) that have no causal link to automated tech services.

Section A

DataStream, a tech startup providing cloud hosting, is implementing Activity-Based Costing (ABC). They have identified 'Server Maintenance' and 'Data Transfer' as key cost pools.

Which of the following would be appropriate cost drivers for these activities? (Select ALL that apply)

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA MA — Management Accounting Practice Exam 6

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