The management accountant of Hepscott Iqbal Limited is currently considering the most appropriate basis for apportioning the company's indirect production overheads between its three principal production cost centres.Which one of the following is the most appropriate basis for apportioning the costs of running the factory canteen?

Question

Quizplus · Accepted Answer

The number of factory employees would be the most appropriate basis for apportioning the costs of running the factory canteen as it directly relates to the usage and need for the canteen facilities. The more employees there are, the more likely they are to use the canteen, and therefore it is reasonable to allocate costs based on this factor.

The Management Accountant of Hepscott Iqbal Limited Is Currently Considering