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.

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Definitions:

Population

The overall population within a designated region or nation.

GDP

The sum total of all goods and services created over a given period in a country, termed Gross Domestic Product, measures its economic achievements.

GDP

Gross Domestic Product is a calculation that reflects the economic success of a nation by summing the value of all produced goods and services within a certain time frame.

Consumption

The use of goods and services by households, contributing to the overall demand in an economy.