The Preferred Cost Allocation Base That Can Be Used to Allocate

question 21

Multiple Choice

The preferred cost allocation base that can be used to allocate central corporate support costs to products is ________.

• A) sales
• B) cost of goods sold
• C) total assets
• D) a measure of usage

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Definitions:

Quantitative

Relating to, measuring, or measured by the quantity of something rather than its quality, often involving statistical, mathematical, or numerical data analysis.

Measurement

Measurement is the process or the result of quantifying the characteristics of phenomena or objects, assigning numbers or symbols according to rules.

Ordinal Scale

A scale of measurement where the attributes being measured are ordered in terms of magnitude or importance, but the intervals between attributes are not necessarily uniform or known.

Rating Scale

A set of categories designed to elicit information about a quantitative or qualitative attribute.