Shubelik Company Is Changing to an Activity-Based Costing Method

question 61

Multiple Choice

Shubelik Company is changing to an activity-based costing method. They have determined that they will use three cost pools. They are setups, inspections, and assembly. Which of the following would be used as the activity base for assembly?

• A) number of direct labor hours
• B) number of setups
• C) number of inspections
• D) number of units to be produced

---

Definitions:

Organization

An entity, such as a company, non-profit, or club, structured and managed to fulfill a particular purpose or set of objectives.

Amy C.Edmondson

A professor known for her research on teamwork, leadership, and organizational learning.

Leadership and Management

Refers to the processes and strategies of guiding and overseeing the operations of an organization or team to achieve its goals.

Big Failure

A significant setback or loss that negatively impacts an individual, project, or company.