Layton Manufacturing Company maintains its own electricity-generating facility to provide power to the firm's various divisions. Layton has no metering facility to precisely measure the amount of power consumed by the divisions of the firm, but feels there is a high degree of correlation between power consumption and machine hours consumed at the divisional level. Under these circumstances, the cost of power attached to divisions may best be described as:
A) Traced to the divisions.
B) Assigned to the divisions.
C) Allocated to the divisions.
D) Disregarded at the divisional level.

Question

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The Answer of Layton Manufacturing Company maintains its own electricity-generating facility to provide power to the firm's various divisions. Layton has no metering facility to precisely measure the amount of power consumed by the divisions of the firm, but feels there is a high degree of correlation between power consumption and machine hours consumed at the divisional level. Under these circumstances, the cost of power attached to divisions may best be described as:
A) Traced to the divisions.
B) Assigned to the divisions.
C) Allocated to the divisions.
D) Disregarded at the divisional level.

Layton Manufacturing Company Maintains Its Own Electricity-Generating Facility to Provide