Occupancy related support-service costs are most appropriately allocated using a space occupied type of cost-allocation base.

Question

Quizplus · Accepted Answer

Occupancy related support-service costs, such as utilities, maintenance, and rent, are directly related to the amount of space occupied by a department or activity. Therefore, using a space occupied type of cost-allocation base is the most appropriate method for allocating these costs, as it reflects the actual consumption of resources.

Occupancy Related Support-Service Costs Are Most Appropriately Allocated Using a Space