Assume That a Factory Seeks to Allocate Rent to Several

question 30

Multiple Choice

Assume that a factory seeks to allocate rent to several departments that occupy the factory.The factory is occupied by all of the departments.Which of the following is the most logical cost driver for allocating the factory rent?

• A) Number of employees
• B) Square footage occupied by each department
• C) Machine hours
• D) Number of labor hours in each department

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Definitions:

Limitation

A restriction or bound; in legal terms, it refers to the maximum time period within which legal action can be initiated.

Equitable Remedies

Judicial awards made to fairly resolve a legal issue or dispute, including injunctions, specific performance, and rescission, based on principles of equity rather than fixed law.

Types

Varieties or categories of objects, individuals, or concepts that share common characteristics.

Distinguish

To distinguish means to recognize or treat (someone or something) as different from other people or things.