A Cost Allocation Rule Is the Method or Process Used

question 138

Multiple Choice

A cost allocation rule is the method or process used to assign the costs in the ________ to the ________.

• A) cost allocation; cost pool
• B) cost pool; opportunity cost
• C) cost object; cost pool
• D) cost pool; cost object

---

Definitions:

Low-income Countries

are nations with a gross national income (GNI) per capita below a certain threshold defined by international institutions like the World Bank.

High-income Countries

Nations with a high gross national income per capita compared to other countries.

Wage Rates

The standard amount of pay given for work performed, typically expressed on an hourly, daily, or piecework basis.

Total Wage Income

The sum of all wages received by individuals within an economy, organization, or sector over a specified period.