Iris Company Is in the Process of Evaluating Allocation Bases

question 37

Multiple Choice

Iris Company is in the process of evaluating allocation bases so that selected costs can be charged to responsibility centres. Would the number of employees likely be a good base to use to allocate the costs of Human Resources, Building and Grounds, and Repairs and Maintenance to user centres respectively? $\begin{array} { | l | c | c | c | } \hline & \begin{array} { c } \text { Human } \\\text { Resources }\end{array} & \begin{array} { c } \text { Buildings and } \\\text { Grounds }\end{array} & \begin{array} { c } \text { Repairs and } \\\text { Maintenance }\end{array} \\\hline 1 & \text { Yes } & \text { Yes } & \text { Yes } \\\hline 2 & \text { Yes } & \text { No } & \text { Yes } \\\hline 3 & \text { Yes } & \text { No } & \text { No } \\\hline 4 & \text { No } & \text { Yes } & \text { Yes } \\\hline 5 & \text { No } & \text { Yes } & \text { No } \\\hline\end{array}$

• A)1
• B)2
• C)3
• D)4
• E)5

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Definitions:

Process Control Engineer

A specialized engineer focused on designing and maintaining systems that control the process and machinery in manufacturing and other industries.

Proportion of Defective

The ratio of defective items in a batch or lot to the total number of items.

Margin of Error

An expression of the amount of random sampling error in a survey's results.

Binomial Populations

Groups of individuals or events subjected to a binomial experiment, where outcomes are categorized into two distinct categories.