Which of the Following Is a Key Consideration in Selecting

question 41

Multiple Choice

Which of the following is a key consideration in selecting an allocation base?

• A)The allocation base should have an indirect association with the cost objective.
• B)The allocation base should be difficult to measure.
• C)There should be logical association between the allocation base and the incidence of costs.
• D)The allocation base should be out of the control of management.

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Definitions:

Inventory

Inventory refers to the total amount of goods and materials held by a business for the purpose of resale or production.

Slope-intercept Form

An equation of a straight line in the format y = mx + b, where m is the slope and b is the y-intercept.

Slope

The measure of the steepness of a line on a graph, defined as the ratio of the vertical change to the horizontal change between two points on the line.

General Form

A way of expressing something that is not specific to any particular case but can apply broadly across instances.