A cost allocation base is only financial in nature, and is usually the cost driver of the particular costs being measured.

Name: A cost allocation base is only financial in nature, and is usually the cost driver of the particular costs being measured.
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Quizplus · Accepted Answer

A cost allocation base can be financial or non-financial in nature, and it is the factor that drives the cost being allocated to different cost objects. Non-financial cost allocation bases could include units produced, hours worked, or miles driven.

A Cost Allocation Base Is Only Financial in Nature, and Is