An example of a cost allocation using a resource driver would be:
A) allocating rent expense based on the metres of floor space within the factory taken up by a particular activity.
B) allocating rates based on the metres of land taken up by a particular activity.
C) all of these options is an example of a cost allocation using a resource driver.
D) allocating electricity costs according to kilowatt hours used to complete an activity.

Question

Quizplus · Accepted Answer

All the options (A, B, and D) are examples of cost allocation using a resource driver because they allocate costs based on the consumption or use of resources (floor space, land, and electricity respectively) by different activities.

An Example of a Cost Allocation Using a Resource Driver