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In ABC costing system optimal cost pool to allocate direct labor in highly automated companies is 1 - direct labour hours 2- number of employees

Accounting Cost Accounting Financial Accounting CMA Costing
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Question added by Ahmed kandil , Cost Controller , Battour Holding Cpompany
Date Posted: 2015/03/09
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FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

1 ->>>>........... direct labour hours

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

In the case of allocation on the basis of direct labor hours, low volume products will not receive cost allocations in proportion to their demands on these activities.

Hence answer option >>>>>>>>>>>>>>>>2- number of employees

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