Question: What should determine whether an allocation base is a good cost driver? Whether or not the base can be measured in terms of hours. Whether

 What should determine whether an allocation base is a good cost

What should determine whether an allocation base is a good cost driver? Whether or not the base can be measured in terms of "hours". Whether or not the base can be applied plantwide. Whether or not the base can be measured with absolute accuracy. Whether or not there is a cause-and-effect relationship between the base and the overhead cost

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!