Which of the Following Would Be the Least Appropriate Allocation

question 43

Multiple Choice

Which of the following would be the least appropriate allocation base for allocating overhead in a highly automated (i.e.,capital-intensive) manufacturing company?

• A)electricity used
• B)machine hours
• C)direct labor hours
• D)material consumed

---

Definitions:

Skateboards

A narrow plank of wood mounted on wheels, used for recreational activity and transportation, typically steered by a rider's balance.

Consolidation

Consolidation refers to the process of combining several smaller entities, debts, or accounts into a single, more comprehensive unit for management efficiency.

Restructuring

The act of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable or better organized.

Asset Purchase

An asset purchase involves buying the assets of a company, such as equipment, inventory, and property, rather than buying the company's stock.