Kilowatt hours would be an appropriate basis for distributing the cost of which of the following service departments to production departments?
A)Power
B)Machine Maintenance
C)Human Resources
D)Building Maintenance

Question

Quizplus · Accepted Answer

Kilowatt hours are a measurement of the amount of electricity used, which would be a relevant basis for distributing the cost of the power service department to production departments. Machine maintenance, human resources, and building maintenance would likely have different bases for cost distribution, such as labor hours or square footage.

Kilowatt Hours Would Be an Appropriate Basis for Distributing the Cost