Cost allocation base refers to the _____.
A)cost driver
B)total costs to be allocated
C)total allocated costs
D)cost objectives

Question

Quizplus · Accepted Answer

Cost allocation base is the factor that drives the costs and is used to distribute costs from a cost pool to cost objects. It helps in determining the amount of cost to be allocated to each cost object. Therefore, option A is the correct choice as it refers to the cost driver. Options B, C, and D are incorrect as they do not accurately define the cost allocation base.

Cost Allocation Base Refers to the _____