For Each Cost Pool Listed Select an Appropriate Allocation Base

question 1

Essay

For each cost pool listed select an appropriate allocation base from the list below. An allocation base may be used only once. Assume a manufacturing company.
Allocation bases for which the information system can provide data:
1.Number of employees per department
2.Employee wages and salaries per department
3.Number of sales orders
4.Hours of operation of each production department
5.Machine hours by department
6.Operations costs of each department
7.Hours of computer use per month per department
8.Number of units sold
Cost pools:
________a.Vice President of Finance's office expenses
________b.Computer operations used in conjunction with manufacturing
________c.Personnel Department
________d.Sales-order costs
________e.Energy costs

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Definitions:

Estate in Land

Refers to the degree, quantity, nature, and extent of interest a person has in real property.

Fee Simple

The most complete form of ownership of real estate, giving the holder full possession and control over the property.

Leasehold

An estate or interest in property held under a lease, granting the holder the right to use and occupy the property for a specified period under certain conditions.

Profit a Prendre

A legal right granted to a person to enter another's land and take away some part of the land's produce or mineral deposits.