Use the following information for the next 6 questions.
Tutors-R-Us provides academic enrichment and review activities for high school students in 4 subject areas: English, mathematics, science, and history. In November 20x1, the firm's information system produced the following data:
-Which of the following is the most logical allocation base for facility rent if the relevant cost object is a subject area (product line)?
A) Number of tutors
B) Direct costs
C) Percentage of square feet occupied
D) Direct labor hours

Question

Use the following information for the next 6 questions.
Tutors-R-Us provides academic enrichment and review activities for high school students in 4 subject areas: English, mathematics, science, and history. In November 20x1, the firm's information system produced the following data: 
-Which of the following is the most logical allocation base for facility rent if the relevant cost object is a subject area (product line)?
A) Number of tutors 
B) Direct costs 
C) Percentage of square feet occupied 
D) Direct labor hours

Quizplus · Accepted Answer

The percentage of square feet occupied is the most logical allocation base for facility rent because rent is typically related to the amount of space used by each product line.

Use the Following Information for the Next 6 Questions