[amp_mcq option1=”linked allocation base” option2=”direct allocation base” option3=”indirect allocation base” option4=”cost allocation base” correct=”option4″]<\/p>\n
The correct answer is: D. cost allocation base<\/strong>.<\/p>\n A cost allocation base is a systematic way of linking a group of indirect costs to a cost object. It is used to assign indirect costs to cost objects in a rational and equitable manner.<\/p>\n A linked allocation base is a type of cost allocation base that is based on a logical relationship between the indirect cost and the cost object. For example, the number of machine hours used by a product is a linked allocation base for the cost of machine maintenance.<\/p>\n A direct allocation base is a type of cost allocation base that is directly traceable to a cost object. For example, the cost of direct materials used in a product is a direct allocation base for the cost of the product.<\/p>\n An indirect allocation base is a type of cost allocation base that is not directly traceable to a cost object. For example, the cost of plant depreciation is an indirect allocation base for the cost of a product.<\/p>\n I hope this helps!<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”linked allocation base” option2=”direct allocation base” option3=”indirect allocation base” option4=”cost allocation base” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-57632","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"\n