For each of the following cost pools select an appropriate allocation base from the list below if the overall cost object is to assign costs to production departments. Each base can be used only once. Assume a manufacturing company.
-Energy costs.
A) Number of employees per department.
B) Machine hours by department.
C) Hours of operation by production department.
D) Operations costs of each department.
E) Indirect labour hours per department.
F) Hours of computer use per month per department.

Question

Quizplus · Accepted Answer

Energy costs are typically related to the hours of operation, as longer operating hours generally lead to higher energy consumption.

For Each of the Following Cost Pools Select an Appropriate