Criteria for Selecting Allocation Bases for Service Department Allocations Should

question 114

Multiple Choice

Criteria for selecting allocation bases for service department allocations should not include:

• A) direct,traceable benefits from the service.
• B) the extent of facilities provided.
• C) the ease of making an allocation.
• D) sales dollars generated during the perioD.
• Revenues are never a good base for allocating service costs.

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Definitions:

Per Capita Energy

The average amount of energy consumption per person in a specific population or area.

Economically Efficient

A situation in which every resource is optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.

Single Energy Source

Reliance on one type of energy for power or fuel, such as oil, natural gas, or solar power.

U.S. Electricity

Refers to the production, distribution, and consumption patterns of electricity within the United States, characterized by regional variations and evolving technologies.