An Allocation Base for a Cost Pool Should Ideally Be

question 32

Multiple Choice

An allocation base for a cost pool should ideally be:

• A) machine hours.
• B) a cost object.
• C) a common cost.
• D) a cost driver.
• E) direct labor, either cost or hours.

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Definitions:

CISG

The United Nations Convention on Contracts for the International Sale of Goods, a set of rules governing the sale of goods between parties from different countries.

International Sales

The sale of goods or services across national boundaries, governed by international commercial law and trade agreements.

Void Contract

An agreement that is null and lacks legal effect or enforceability from its inception.

Valid Contract

An agreement between two or more parties that is enforceable by law.