A manufacturer reports three activities: assembling components into products; product design; and sales order processing. Determine whether
Question:
A manufacturer reports three activities: assembling components into products; product design; and sales order processing. Determine whether each of the following cost drivers relates to assembly, design, or order processing.
1. Number of sales orders processed
2. Direct labor hours to assemble components
3. Number of design changes
4. Number of components assembled
5. Number of design hours
6. Number of shipments made
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Sure each cost driver can relate to one or more activities The cost driver is the unit of an activit...View the full answer
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