If a company has identified three major activities as setting up, handling material, and assembling, possible cost drivers would most likely be set-up hours, production runs, and number of shipments, respectively.

Question

Quizplus · Accepted Answer

The correct cost drivers for the activities would be set-up hours for setting up, material handling hours or weight for handling material, and labor hours or machine hours for assembling.

If a Company Has Identified Three Major Activities as Setting