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Which of the following is a key consideration in selecting an allocation base?
a. The allocation base should have an indirect association with the cost objective.
b. The allocation base should be difficult to measure.
c. There should be logical association between the allocation base and the incidence of costs.
d. The allocation base should be out of the control of management.

Respuesta :

ogorwyne

Answer:

C. There should be logical association between the allocation base and the incidence of costs.

Explanation:

We define the allocation base as that quantity through which the overhead cost and be allocated to. This base is usually in the form of a quantity. It could be the kilowatts used in hours, or the machine hours used.

It should be able to show to a logical extent how the cost object used the resources to which it is assigned

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