Answer
The product design activity is a product-level activity. The product design cost is determined by the number of products supported and it is not influenced by the number of batches or units processed.
Work Step by Step
As given above
Managerial Accounting (15th Edition)
by Garrison, Ray; Noreen, Eric, Brewer, Peter
Published by
McGraw-Hill Education
ISBN 10:
007802563X
ISBN 13:
978-0-07802-563-1
Chapter 7 - Activity-Based Costing: A Tool to Aid Decision Making - The Foundational 15 - Required - Page 318: 8
Update this answer!
You can help us out by revising, improving and updating this answer.
Update this answerAfter you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.
