The number of cubic feet is a logical cost driver for allocating depreciation expense of heating equipment to cost objects.

Question

Quizplus · Accepted Answer

The number of cubic feet, or volume, is a logical cost driver for allocating depreciation of heating equipment because the larger the heating equipment's capacity, the more it has been used to heat a space, and therefore, the more wear and tear it has experienced. As a result, it is appropriate to allocate more depreciation expense to cost objects that have used the heating equipment for a larger area or volume.

The Number of Cubic Feet Is a Logical Cost Driver