What Would Be a Possible Causal Factor to Use When

question 107

Multiple Choice

What would be a possible causal factor to use when allocating cafeteria costs?

• A)number of square metres
• B)number of direct labour hours
• C)number of employees
• D)appraised value of square metres

---

Definitions:

Preferences

Individual choices or inclinations towards certain products, services, or outcomes over others.

Location Subsidies

Financial incentives provided by governments to encourage businesses to set up or expand in particular areas, often to stimulate economic growth.

Public Good

A good or service offered to society's members at no cost, sponsored by either a private entity or the government with no intent of making a profit.

Marginal Cost

Marginal cost is the change in total production cost that comes from making or producing one additional unit of a good or service.