Administrative Costs Are Currently Split Equally Among 4 Different Product

question 2

Short Answer

Administrative costs are currently split equally among 4 different product lines at WDT Company. To encourage the managers of each of the product lines to implement a new material waste policy aimed at reducing materials used in manufacturing, which of the following would best achieve this goal? a. Allocating administrative costs based on the cost per unit of materials used in production.
B) Allocating administrative costs based on the number of labor hours used in manufacturing.
C) Allocating administrative costs based on the amount of scrap produced from manufacturing.
D) Allocating administrative costs based on the speed of production.

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Definitions:

Slope

The rate at which a line or curve inclines or declines, indicating the steepness.

Preferences

The subjective tastes and desires that guide consumers in making their choice among various goods and services.

Incomplete

Characterizing something as not fully finished, lacking some parts, or not comprehensive.

Transitive

A relation is described as transitive if, whenever it relates some A to B and B to C, it also relates A to C.