Companies that use manufacturing lead time as the base for allocating manufacturing costs to products consider that it has the following benefit(s):
A)operating profit rises.
B)total overhead costs decrease.
C)managers are motivated to reduce the time taken to manufacture products.
D)All of these answers are correct.

Question

Quizplus · Accepted Answer

Using manufacturing lead time as the base for allocating manufacturing costs to products has the benefit of reducing total overhead costs, improving operating profits, and motivating managers to reduce the time taken to manufacture products. Therefore, all of the given choices are correct.

Companies That Use Manufacturing Lead Time as the Base for Allocating