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:

Question

Quizplus · Accepted Answer

The number of parts used is the most appropriate cost driver for assigning materials handling costs to the various products. The more parts a product requires, the higher the materials handling costs will be. Direct labor hours and number of units produced may not be directly related to materials handling costs, while the number of suppliers involved may be more relevant to purchasing and supplier management costs.

A Manufacturing Firm Produces Multiple Families of Products Requiring Various