For Each Cost Pool Listed Select an Appropriate Allocation Base

question 154

Essay

For each cost pool listed select an appropriate allocation base from the list below. An allocation base may be used only once. Assume a manufacturing company.
Allocation bases for which the information system can provide data:
1. Number of employees per department
2. Employee wages and salaries per department
3. Production facility square footage
4. Hours of operation of each production department
5. Machine hours by department
6. Operations costs of each department
7. Hours of computer use per month per department
8. Indirect labor-hours per department
Cost pools:

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Definitions:

Cultural Context

The social, historical, and cultural environment in which something occurs or develops, influencing its characteristics and interpretations.

Face-to-face Communication

Direct interaction between people in the same physical location, allowing for immediate feedback.

Embellishment

The addition of decorative details or features to enhance the attractiveness of something; in communication, it refers to adding details to make a story more interesting or compelling.

Deductive

Deductive reasoning involves drawing specific conclusions from general premises or facts, using a top-down approach.