Costs of inspecting the finished products


Problem: Guerra Electronics manufactures a variety of electronic gadgets for use in the home. Which of the following would probably be the most accurate measure of activity to use for allocating the costs of inspecting the finished products at Guerra?

Why????

A) machine-hours.

B) direct labor-hours.

C) inspection time.

D) number of inspections.

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Accounting Basics: Costs of inspecting the finished products
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