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:

Disruption

An interruption or disturbance that causes a break in the normal flow of activities or operations, often leading to innovation or change.

Unfinished Business

Issues, tasks, or emotional matters that have not been resolved or completed, often leading to unresolved feelings or conflict.

Co-Lead

Acting as a joint leader or facilitator in a group or project, sharing the leadership role with another individual.

Strong Reactions

Intense emotional or physical responses to stimuli or situations, often unexpected or powerful.