Choice of activity as the overhead cost driver in a service organisation's flexible budget.
Define overhead application and describe why direct labour hours would not be considered an accurate cost driver for allocating overhead costs for a hotel. Provide two examples of cost drivers that could be used in the hotel industry and justify your answer.

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The Answer of Choice of activity as the overhead cost driver in a service organisation's flexible budget. Define overhead application and describe why direct labour hours would not be considered an accurate cost driver for allocating overhead costs for a hotel. Provide two examples of cost drivers that could be used in the hotel industry and justify your answer.

Choice of Activity as the Overhead Cost Driver in a Service