the long-run average or peak period needs of operating departments would be the most suitable base for allocating: multiple choice the fixed element of power costs. any spending variance associated with power costs. the variable element of power costs. total power costs.

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12-12-2022
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the long-run average or peak period needs of operating departments would be the most suitable base for allocating: multiple choice the fixed element of power costs. any spending variance associated with power costs. the variable element of power costs. total power costs.

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mahajanshrutivt mahajanshrutivt · Answer 1 · 2022-12-22T07:53:34+01:00

The long-run average or peak period needs of operating departments would be the most suitable base for allocating any spending variance associated with power costs. Thus, the correct answer is option B.

What are operating departments?

The operating departments carry out the organization's primary goals. In a manufacturing organization, this central purpose is the transformation of raw materials or the assembly of parts into finished goods, whereas in a service organization, it is the provision of services to clients.

The best ground for distributing any difference in spending related to Power costs would be the operating departments' long-run average or peak time demands.

Therefore, any spending variance associated with power costs is the most suitable base for allocating the long-run average or peak period needs of operating departments.

To learn more about operating department, click here:

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