Which Allocation Base Is Best Used to Allocate Building Depreciation

question 62

Multiple Choice

Which allocation base is best used to allocate building depreciation?

• A)Square feet of space used
• B)Number of employees
• C)Hours used
• D)Building depreciation can be separately traced to each department.

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Definitions:

Quality Costs

Expenses related to ensuring products or services meet company and customer standards, including costs of prevention, appraisal, and failure.

Quality of Design

How well a product's design meets customers' needs and expectations in terms of functionality, aesthetics, and overall performance.

Quality of Conformance

The degree to which a product or service meets the specified design or specifications and quality standards during the manufacturing or delivery process.

Excellence

The quality of being outstanding or extremely good in performance or quality.