Activity based costing allocates indirect costs based on different types of cost drivers. Which of the following cost drivers serve as a basis of allocation when activity based costing is used?
A) number of units produced
B) direct labor hours
C) direct material costs
D) direct equipment costs

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The Answer of Activity based costing allocates indirect costs based on different types of cost drivers. Which of the following cost drivers serve as a basis of allocation when activity based costing is used?
A) number of units produced
B) direct labor hours
C) direct material costs
D) direct equipment costs

Activity Based Costing Allocates Indirect Costs Based on Different Types