Which of the Following Would Be Least Likely to Be

question 21

Multiple Choice

Which of the following would be least likely to be used as an allocation base in a company that applies a single plantwide rate?

• A) Machine hours.
• B) Direct material costs.
• C) Direct labor cost.
• D) Direct labor hours.

---

Definitions:

Required Return

Required return is the minimum gain an investor expects to achieve from an investment, accounting for the risk level compared to the return of a risk-free asset.

Risk-Free Rate

The return on investment with no loss of principal, often represented by the yield on government securities.

Beta

An indicator that determines the systematic risk or volatility of a security or a portfolio relative to the overall market.

Portfolio Beta

A measure of the volatility, or systematic risk, of a portfolio in comparison to the market as a whole.