tb mc qu. 9-68 (static) which of the following would be a reasonable basis... which of the following would…

tb mc qu. 9-68 (static) which of the following would be a reasonable basis... 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? multiple choice number of components per completed unit amount of overhead applied to each completed unit amount of time required to produce one unit number of production runs per year

tb mc qu. 9-68 (static) which of the following would be a reasonable basis... 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? multiple choice number of components per completed unit amount of overhead applied to each completed unit amount of time required to produce one unit number of production runs per year

Answer

Brief Explanations:

In activity - based costing (ABC), materials handling costs are related to the number of components. More components mean more handling. Overhead applied is a result of cost - allocation, not a basis for materials handling cost allocation. Time to produce a unit is related to labor or production efficiency, not materials handling. Number of production runs per year is more related to setup costs rather than materials handling costs.

Answer:

Number of components per completed unit