The most appropriate basis for allocating the factory building rent to specific departments would be the:
A)Number of machines in each department.
B)Number of employees in each department.
C)Square footage of each department.
D)Amount of time the plant manager spends in the department.

Question

Quizplus · Accepted Answer

The most appropriate basis for allocating factory building rent to specific departments would be the square footage of each department. This is because rent is a fixed cost and is generally based on the amount of space being used by each department. Therefore, allocating the rent based on the square footage of each department would be the most accurate and equitable method of allocating this cost.

The Most Appropriate Basis for Allocating the Factory Building Rent