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:

Birth Rates

The number of live births per thousand of the population per year.

Emigration Rate

The measure of how many individuals per thousand leave a country or region to reside elsewhere within a specified time frame.

Negative Growth

A decrease in the size or number of something, often used in the context of economies or populations shrinking.

Age Structure

The distribution of individuals among different ages in a population, usually depicted in a demographic pyramid.