Which of the Following Is the Most Reasonable Allocation Base

question 26

Multiple Choice

Which of the following is the most reasonable allocation base for a highly mechanized process?

• A)Direct labor hours
• B)Machine hours
• C)Direct materials cost
• D)The number of different materials used to produce the product

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Definitions:

Shareholders

Individuals or entities that own shares in a corporation and have an interest in its performance and governance.

Financial Value

The quantifiable worth of an asset, security, or company, often determined by material and tangible factors within markets.

Extrinsic Rewards

Incentives provided by an external source, such as an employer, to motivate employees, which can include wages, bonuses, and other tangible benefits.

Intrinsic Rewards

Satisfaction a person receives from the process or act of performing a particular activity, rather than from any external rewards.