A Driver That Is Appropriate for Some Resources May Not

question 27

Multiple Choice

A driver that is appropriate for some resources may not be appropriate for other resources.The solution to the problem is:

• A)Use capacity resources in different proportions.
• B)Do not allocate the resources.
• C)Allocate the resources only if they are variable.
• D)Use a separate cost pool for each class of similar resources.
• E)None of the above are solutions to the problem.

---

Definitions:

Real Estate Taxes

Taxes levied on property by the local government, based on the assessed value of the property.

Cleaning Service

A company or service provided by workers who perform cleaning tasks for residential or commercial spaces.

Variable Cost Percentage

The ratio of variable costs to sales, used to assess how costs change in relation to changes in a business's sales volume.

Fixed Costs

Costs that do not fluctuate with the level of production or sales, such as rent, insurance, and salaries.