Janine Pty Limited wishes to allocate rent costs in her organisation.Which of the four drivers below would you consider best for allocating this cost?

Question

Quizplus · Accepted Answer

The best driver for rent cost allocation would be floor space because it directly relates to the area of the building being used and occupied by the business. Machine hours, direct labour hours, and direct labour cost may not accurately reflect the amount of space being utilized and could result in inaccurate cost allocation.

Janine Pty Limited Wishes to Allocate Rent Costs in Her