Which of the following would be the best allocation base for a new product design?
A)Square feet of space occupied.
B)Quantity of materials used.
C)Number of new products.
D)Number of machine setups.
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

Number of new products would be the best allocation base for a new product design because it directly relates to the activity that incurs costs in the product design process. This allocation base would accurately assign costs to each new product while accounting for the different design requirements and complexity of each product. The other options do not directly relate to the activity of product design and may not accurately reflect the costs incurred.

Which of the Following Would Be the Best Allocation Base