Which of the following is the most appropriate cost allocation base for a purchasing department?
A) Time spent speaking with other department heads on the telephone
B) Hours of training provided to purchasing department employees
C) Allocated costs of other departments
D) Number of purchase requisitions

Question

Quizplus · Accepted Answer

The number of purchase requisitions is the most appropriate cost allocation base for a purchasing department as it directly relates to the workload and resources needed for the department to fulfill their duties. The other options may not accurately represent the department's workload or impact on the organization's costs.

Which of the Following Is the Most Appropriate Cost Allocation