Logical cost allocation bases for overhead costs include:
A)cubic feet of packages moved to measure distribution activity.
B)machine hours to measure setup activity.
C)direct manufacturing labor hours to measure product designing activity.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Cubic feet of packages moved is a logical cost allocation base for measuring distribution activity, as it directly relates to the volume of goods handled.

Logical Cost Allocation Bases for Overhead Costs Include