Which of the following describes the allocation base for allocating manufacturing overhead costs?

Question

Quizplus · Accepted Answer

The allocation base for allocating manufacturing overhead costs is the primary cost driver of indirect manufacturing costs. This is because indirect costs are not directly traceable to a specific product or job, so a cost driver is used to allocate these costs to the products based on their usage of the cost driver. The allocation base should have a causal relationship with the indirect costs being allocated.

Which of the Following Describes the Allocation Base for Allocating