Which of the following cost and cost allocation base have a strong cause and effect relationship?
A) administration costs and cubic feet
B) setup costs and square feet
C) machine depreciation and output units
D) machine maintenance and setup hours

Question

Quizplus · Accepted Answer

Machine depreciation and output units have a strong cause and effect relationship as the depreciation of a machine would depend on the number of units produced. The more output units, the greater the wear and tear on the machine, resulting in higher depreciation.

Which of the Following Cost and Cost Allocation Base Have