Rent and maintenance expenses would most likely be allocated based on:
A) Sales volume by department.
B) Number of employees in each department.
C) Square feet of floor space occupied.
D) Number of invoices processed.
E) Number of hours worked.

Question

Quizplus · Accepted Answer

Square feet of floor space occupied is a common and logical method of allocating rent and maintenance expenses as it directly relates to how much space each department is using. Allocation based on sales volume, number of employees, number of invoices processed, or number of hours worked would not necessarily indicate how much each department is using in terms of physical space.

Rent and Maintenance Expenses Would Most Likely Be Allocated Based