JC Manufacturing produces products that use a variety of components.Which of the following cost drivers would be the MOST applicable for assigning material handling costs to the finished products?

Question

Quizplus · Accepted Answer

The number of components used is the most applicable cost driver for material handling costs as the more components used in a finished product, the more materials need to be handled during the production process. Direct labour cost and direct labour hours are more applicable for assigning labour-related costs, while the number of units produced may not necessarily reflect the amount of materials that need to be handled.

JC Manufacturing Produces Products That Use a Variety of Components