Which of the Following Would Be an Appropriate Cost-Allocation Base

question 48

Multiple Choice

Which of the following would be an appropriate cost-allocation base for allocating the cost of the company cafeteria?

• A) Square footage occupied by departments.
• B) Number of hours of use.
• C) Number of meals served.
• D) Salaries of personnel purchasing meals.

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Definitions:

Monetary Incentives

Financial rewards given to employees as motivation to boost productivity or achieve specific targets.

Potential Place

A location or venue that has the capability or promise to serve a specific purpose or function, but isn't currently utilized for that end.

Reactive Approach

A management style where actions and decisions are taken in response to events rather than anticipating them.

Uniform Pool

A shared resource or collection of items, such as uniforms, that are uniformly distributed among members of a group or organization.