A manufacturing firm produces multiple families of products requiring various combinations of different types of parts.Of the following,the MOST appropriate cost driver for assigning materials handling costs to the various products is:
A)direct labour hours.
B)number of parts used.
C)number of suppliers involved.
D)number of units produced.

Question

Quizplus · Accepted Answer

The number of parts used is the most appropriate cost driver for assigning materials handling costs because it reflects the complexity of the product and the level of effort required to handle and manage the various types of parts. Direct labour hours and number of units produced may not accurately capture the materials handling activity, while the number of suppliers involved may not be directly related to the materials handling costs.

A Manufacturing Firm Produces Multiple Families of Products Requiring Various