Which of the following cost and cost allocation base have a strong cause and effect relationship?
A) administration costs and cubic feet
B) setup costs and square feet
C) quality control costs and the number of inspections
D) machine maintenance and setup hours

Question

Quizplus · Accepted Answer

Quality control costs and the number of inspections have a strong cause and effect relationship. The more inspections that are required, the higher the quality control costs will be. The other options do not necessarily have a direct cause and effect relationship.

Which of the Following Cost and Cost Allocation Base Have