Which of the following would not be an appropriate cost-allocation base for allocating the cost of the corporate library in a consulting company with multiple divisions?
A) Number of employees employed in each division
B) Square footage occupied by each division
C) Cost of periodicals ordered by each division
D) Number of consultants employed in each division

Question

Quizplus · Accepted Answer

Square footage occupied by each division is not an appropriate cost-allocation base for allocating the cost of the corporate library, as the use of library resources is not related to the amount of space a division occupies.

Which of the Following Would Not Be an Appropriate Cost-Allocation