Solved

Several Activities Commonly Performed in Manufacturing Organizations Are Listed

Question 100

Matching

Several activities commonly performed in manufacturing organizations are listed. potential cost drivers and / or allocation bases for those activities. Match the most suitable cost driver with the best activity. Each numbered item has only one correct answer. Each lettered item may be used once, more than once, or not at all.

Premises:
Administrative salaries
Headquarters housekeeping
Customer market research conducted in groups of 10 customers
General technical support salaries
Single product line equipment amortization
Departmental janitorial services
Salaries of product designers
Shipping costs
Customer sales representative salaries
Material handling wages
Responses:
Machine hours
Number of customers
Number of engineering change orders
No suitable cost driver or allocation base listed
Product weight
Square metres
Number of questions
Number of customer phone calls
Typically not allocated

Correct Answer:

Administrative salaries
Headquarters housekeeping
Customer market research conducted in groups of 10 customers
General technical support salaries
Single product line equipment amortization
Departmental janitorial services
Salaries of product designers
Shipping costs
Customer sales representative salaries
Material handling wages
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