The amount of allocation effort needed to properly assign costs is lowest for the facility level costs, and greatest for the unit level costs.

Question

Quizplus · Accepted Answer

Facility level costs are allocated to entire facilities or departments, which makes the allocation process relatively simple. Unit level costs, on the other hand, are associated with specific units or products, which requires a more detailed allocation process. Therefore, the amount of allocation effort needed is lowest for facility level costs and greatest for unit level costs.

The Amount of Allocation Effort Needed to Properly Assign Costs