Multiple Choice
Administrative costs are currently split equally among 4 different product lines at WDT Company.To encourage the managers of each of the product lines to implement a new material waste policy aimed at reducing materials used in manufacturing, which of the following would best achieve this goal?
A) Allocating administrative costs based on the cost per unit of materials used in production.
B) Allocating administrative costs based on the number of labor hours used in manufacturing.
C) Allocating administrative costs based on the amount of scrap produced from manufacturing.
D) Allocating administrative costs based on the speed of production.
Correct Answer:
Verified
Correct Answer:
Verified
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