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Activity Based Costing Allocates Overhead (Indirect Costs)to Fixed Costs Based

Question 3

Multiple Choice

Activity based costing allocates overhead (indirect costs) to fixed costs based upon four different types of drivers.Which of the following is one of the cost drivers that serves as a basis of cost allocation?​ 


A)  number of units produced 
B)  number of labor hours 
C)  quantity of materials used 
D)  direct equipment costs

Correct Answer:

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