Assume That a Factory Seeks to Allocate Rent to Several

question 80

Multiple Choice

Assume that a factory seeks to allocate rent to several departments that occupy the factory.The factory is occupied by all the departments.Which of the following is the most logical cost driver for allocating the factory rent?

• A) Number of employees
• B) Square footage occupied by each department
• C) Machine hours
• D) Number of labor hours in each department

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Definitions:

Nonprofit Organization

An entity that operates for the public or societal benefit rather than for the purpose of making profits for owners or shareholders, and which typically enjoys certain tax exemptions.

Capacity Elements

Components or factors that determine the capability of an individual or organization to achieve its objectives.

Capacity Building Activities

Initiatives designed to strengthen the skills, competencies, and abilities of nonprofits and their staff, enhancing their ability to fulfill their missions.

Nonprofit Organizations

Organizations that operate for the collective, public, or social benefit, rather than focusing on generating profits for owners or investors.