A possible causal factor to use when allocating cafeteria costs would be
A)number of square feet.
B)number of direct labour hours.
C)number of employees.
D)appraised value of square footage.

Question

Quizplus · Accepted Answer

Number of employees is the most logical choice for allocating cafeteria costs as the number of employees using the cafeteria is directly correlated with the cost incurred. Allocating costs based on square footage or appraised value of square footage would not accurately reflect the usage of the cafeteria. Similarly, allocating costs based on direct labour hours would not accurately reflect employee usage of the cafeteria as not all employees may take a lunch break.

A Possible Causal Factor to Use When Allocating Cafeteria Costs