A Cost Allocation Base May Be Any of the Following

question 22

Multiple Choice

A cost allocation base may be any of the following except:

• A) a cost pool.
• B) a cost driver.
• C) a non-financial quantity.
• D) a way to link indirect costs to a cost object.

---

Definitions:

Valued Resources

Resources, either material or non-material, that are highly regarded and sought after in a society or by individuals.

Exchange Theory

Holds that social interaction involves trade in valued resources.

Altruistic Behavior

Actions motivated by the desire to help others without expecting anything in return.

Rational Choice Theory

A framework that assumes individuals act based on the rational evaluation of the costs and benefits of their actions to maximize personal advantage.