The allocation base is a measure of activity that is used to allocate costs to a cost object.

Name: The allocation base is a measure of activity that is used to allocate costs to a cost object.
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Quizplus · Accepted Answer

The allocation base is indeed a measure of activity (such as machine hours, labor hours, or material cost) that is used to assign, or allocate, costs to cost objects, ensuring that costs are distributed based on the cost object's consumption of resources.

The Allocation Base Is a Measure of Activity That Is