Which of the following is an appropriate base to distribute the cost of building depreciation to responsibility centers?
A) Number of employees in the responsibility centers.
B) Budgeted sales dollars of the responsibility centers.
C) Square feet occupied by the responsibility centers.
D) Budgeted net income of the responsibility centers.
E) Total budgeted direct operating costs of the responsibility centers.

Question

Quizplus · Accepted Answer

The most appropriate base for distributing the cost of building depreciation to responsibility centers is the square feet occupied by the responsibility centers. This method allocates costs based on the actual space used by each center, providing a fair and measurable way to distribute building-related expenses.

Which of the Following Is an Appropriate Base to Distribute