What cost driver would you use to allocate indirect materials to products?

What will be an ideal response?


Answers will vary
Indirect materials are likely to be a variable cost. A volume measure, such as number of units, direct labor hours, or machine hours, would be a reasonable cost driver for indirect materials.

Business

You might also like to view...

A deficiency that implies that there is a reasonable possibility of misstatement in the financial statements that is significant but not material is:

A. a significant deficiency. B. a probable deficiency. C. an insignificant deficiency. D. a material weakness.

Business

If Accounts Receivable has debit postings of $29,000, credit postings of $22,000, and a normal ending balance of $24,000, which of the following was its beginning balance?

a. $31,000 Dr. b. $17,000 Dr. c. $17,000 Cr. d. $31,000 Cr.

Business

Which of the following is NOT a communication skill for team meetings?

a. Ask questions appropriately. b. Listen actively. c. Focus on past behaviors when giving feedback. d. Process feelings in the group.

Business

What would a deep look at the cost structure of Boll and Branch (Illustration Capsule 4.1), a manufacturer and online marketer of luxury linens, reveal?

What will be an ideal response?

Business