William runs an accounting firm,and predominantly incurs overhead costs that are proportional to the amount of effort put in by her staff members.More senior staff members generally perform more complex and cost intensive overhead related efforts.Which of the four drivers below would you consider best for allocating overhead costs?

Question

Quizplus · Accepted Answer

Direct labour cost is the best driver for allocating overhead costs in this scenario because it reflects the cost of labor, which correlates with the complexity and intensity of the work performed by more senior staff members.

William Runs an Accounting Firm,and Predominantly Incurs Overhead Costs That