Question: Activity based costing allocates overhead ( indirect costs ) to fixed costs based on four different types of drivers. Which of the following is one

Activity based costing allocates overhead (indirect costs) to fixed costs based on four different types of drivers. Which of the following is one of the cost drivers that serves as a basis of cost allocation?
Question 5 options:
1)
number of units produced
2)
number of labor hours
3)
quantity of materials used
4)
direct equipment costs

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!