Question

A cost-allocation base may be any of the following except a

A. cost driver.

B. cost pool.

C. way to link indirect costs to a cost object.

D. nonfinancial quantity.

Answer 1

The correct answer is B. cost pool. A cost-allocation base is a measure used to allocate indirect costs to cost objects. It is a way to link indirect costs to a cost object.

Step-by-step explanation:

A cost-allocation base may be any of the following except a B. cost pool.

A cost-allocation base is a measure used to allocate indirect costs to cost objects. It is a way to link indirect costs to a cost object. For example, if a company wants to allocate overhead costs to different departments, it might use the number of employees in each department as the cost-allocation base. This base helps determine how much of the total indirect costs should be allocated to each department. Therefore,