For Each Cost Pool Listed Select an Appropriate Allocation Base

question 39

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.Number of sales orders
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.Number of units sold
Cost pools:
___a. Vice President of Finance's office expenses
___b. Computer operations used in conjunction with manufacturing
___c. Personnel Department
___d. Sales-order costs
___e. Energy costs

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Definitions:

Q-Data

Self-report data or subjective measures obtained from questionnaires and psychological tests that provide insights into an individual's personality traits and emotional state.

Introspection

The examination of one's own conscious thoughts and feelings, often used as a method of psychological analysis.

Self-Rating

An assessment method in which individuals evaluate their own abilities, characteristics, or conditions.

Factor Analysis

A statistical technique that determines latent variables or factors responsible for the correlation patterns observed among a set of variables.