a product-level activity center would likely include all of the following costs except: a. materials handling costs. b. legal fees to obtain and protect patents. c. packaging design costs. d. engineering development costs.



Answer :

(a) materials handling costs. With the exception of materials handling costs, all of the following expenditures would likely be included in a product-level activity center.

Costs associated with material handling are those incurred during a product's entire production process, from design to shipping. It covers expenses like those for gasoline, labor, installing machinery, and other expenses as well. The term "materials handling costs" (or "MH%") refers to the multiplier, which is [*]%, that accounts for labor costs associated with production planning, material management, purchasing, storage, and quality inspection of incoming goods, as well as freight and insurance, material scrap and attrition (at the component level), and finance. The several sorts of expenses connected with preparing and moving inventory are referred to as handling costs. The majority of the costs go toward order fulfillment costs like shipping and packing. In manufacturing, warehousing, and distribution, material handling refers to the transportation, protection, storage, and management of materials and goods.

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