An Example of a Cost Allocation Using a Resource Driver

question 30

Multiple Choice

An example of a cost allocation using a resource driver would be:

• A) allocating rent expense based on the metres of floor space within the factory taken up by a particular activity.
• B) allocating rates based on the metres of land taken up by a particular activity.
• C) all of these options is an example of a cost allocation using a resource driver.
• D) allocating electricity costs according to kilowatt hours used to complete an activity.

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Definitions:

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