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 labor hours
B) number of units produced
C) number of parts used
D) number of suppliers involved

Question

Quizplus · Accepted Answer

The number of parts used is the most appropriate cost driver for assigning materials handling costs because it directly relates to the amount of handling required for each product. The more parts a product requires, the more materials handling will be needed to assemble the product. Direct labor hours and number of units produced may not accurately reflect the amount of materials handling required, and the number of suppliers involved is not directly related to materials handling costs.

A Manufacturing Firm Produces Multiple Families of Products Requiring Various