Which of the following would NOT be considered an activity for the purposes of an activity-based costing system?
A) Materials handling
B) Machine processing
C) Direct materials cost
D) Packaging

Question

Quizplus · Accepted Answer

Direct materials cost is a cost element, not an activity. Activities are the tasks and processes involved in producing a product or service. Materials handling, machine processing, and packaging are all activities.

Which of the Following Would NOT Be Considered an Activity