Author Question: For each cost pool listed select an appropriate allocation base from the list below. An allocation ... (Read 99 times)

storky111 · **on:** Mar 6, 2021

Question 1

When using the cause-and-effect criterion, cost drivers are selected as the cost allocation bases.
◦ true
◦ false

Question 2

For each cost pool listed select an appropriate allocation base from the list below. An allocation base may be used only once. Assume a manufacturing company.

Allocation bases for which the information system can provide data:

1. Number of employees per department
2. Employee wages and salaries per department
3. Number of sales orders
4. Hours of operation of each production department
5. Machine hours by department
6. Operations costs of each department
7. Hours of computer use per month per department
8. Number of units sold

Cost pools:

________

a. Vice President of Finance's office expenses

________

b. Computer operations used in conjunction with manufacturing

________

c. Personnel Department

________

d. Sales-order costs

________

e. Energy costs

Sarahjh · **Reply #1 on:** Mar 6, 2021

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