Activity based costing allocates overhead (indirect costs)to fixed costs based upon four different types of drivers.Which of the following is one of the cost drivers that serves as a basis of cost allocation?
A) number of units produced
B) number of labor hours
C) quantity of materials used
D) direct equipment costs

Question

Activity based costing allocates overhead (indirect costs)to fixed costs based upon four different types of drivers.Which of the following is one of the cost drivers that serves as a basis of cost allocation?​ 
A) number of units produced 
B) number of labor hours 
C) quantity of materials used 
D) direct equipment costs

Quizplus · Accepted Answer

The Answer of Activity based costing allocates overhead (indirect costs)to fixed costs based upon four different types of drivers.Which of the following is one of the cost drivers that serves as a basis of cost allocation?​ 
A) number of units produced 
B) number of labor hours 
C) quantity of materials used 
D) direct equipment costs

Activity Based Costing Allocates Overhead (Indirect Costs)to Fixed Costs Based