Which of the Following Would Be a Reasonable Basis for Assigning

question 64

Multiple Choice

Which of the following would be a reasonable basis for assigning the materials handling costs to the units produced in an activity-based costing (ABC) system?

• A) Number of production runs per year.
• B) Number of components per completed unit.
• C) Amount of time required to produce one unit.
• D) Amount of overhead applied to each completed unit.