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Commerce · Q36

Costing

Graduate and Post Graduate · Commerce · question 36

Q36

Appropriate basis for apportionment of material handling charges is ________.

A.
material purchased
B.
material in stock
C.
material consumed
Answer
D.
material wasted

Answer: Option C

Solution

Answer: Option C
Solution:
Appropriate basis for apportionment of material handling charges is material consumed. Material handling costs are a crucial component of a manufacturing company's profit calculations.