Which of the Following Would Be the Most Appropriate Base

question 73

Multiple Choice

Which of the following would be the most appropriate base for allocating the costs of the housekeeping department?

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

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Definitions:

Degree of Rivalry

The extent of competition between firms in the same industry, influencing market dynamics and profitability.

Threat of Substitute Products

The potential risk that consumers might replace a company's product with similar goods or services from another provider.

Degree of External Competition

The extent of competition that a business faces from other companies within the same industry or market.

Operational Growth

The expansion of a company's operational capacity, often leading to increased output, efficiency, or market share.