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In the Spaces Provided, Write the Letter of the Cost

Question 42

Matching

In the spaces provided, write the letter of the cost driver that best matches the overhead activity.

Premises:
Receiving costs
Material handling
Machine depreciation
Maintenance costs
Engineering design
Building lease
Setup costs
Inspection costs
Responses:
Number of machine hours used
Number of inspections
Receiving orders per product line
Number of engineering changes
Number of product setups
Amount of machine floor space
Number of maintenance hours worked in each division
Number of parts used

Correct Answer:

Receiving costs
Material handling
Machine depreciation
Maintenance costs
Engineering design
Building lease
Setup costs
Inspection costs
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