CAF-5 · Chapter 3 · Question 1 of 10
Under Activity-Based Costing (ABC), which of the following is the most appropriate cost driver for apportioning "Materials handling / Materials Management cost"?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Number of material requisitions or weight/volume of materials consumed
Explanation
According to the ABC guidelines in the text, material handling and management costs are driven by the frequency of moving materials (number of requisitions) or the physical characteristics of the materials (weight/volume).
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