Which of the Following Cost and Cost Allocation Base Have

question 55

Multiple Choice

Which of the following cost and cost allocation base have a strong cause and effect relationship?

• A) administration costs and cubic feet
• B) setup costs and square feet
• C) machine depreciation and output units
• D) machine maintenance and setup hours

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Definitions:

Operational Approach

A method or strategy applied in the functioning and management of operations within an organization to improve efficiency and effectiveness.

Efficiency

The ratio of the output to the input of any system, highlighting the ability to use the least amount of resources to achieve the highest amount of output.

Quality

The standard or measure of excellence of a product, service, or process, often gauged against customer expectations and industry benchmarks.

Management History

The study of the evolution of management thought, practices, and theories over time, reflecting changes in societal norms, economic conditions, and technological advancements.