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An Example of a Cost Allocation Using a Resource Driver

Question 30

Multiple Choice

An example of a cost allocation using a resource driver would be:


A) allocating rent expense based on the metres of floor space within the factory taken up by a particular activity.
B) allocating rates based on the metres of land taken up by a particular activity.
C) all of these options is an example of a cost allocation using a resource driver.
D) allocating electricity costs according to kilowatt hours used to complete an activity.

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