In a standard costing system, a cost-allocation base would most likely be:
A)actual machine-hours
B)normal machine-hours
C)standard machine-hours
D)Any of these answers is correct.

Question

Quizplus · Accepted Answer

In a standard costing system, a cost-allocation base should be standard machine-hours, which is the estimated amount of time that should be required to manufacture one unit of output. This provides a more accurate basis for allocating overhead costs than actual or normal machine-hours, which can fluctuate depending on various factors. Therefore, standard machine-hours is the best choice as a cost-allocation base in a standard costing system.

In a Standard Costing System, a Cost-Allocation Base Would Most