Asked by Laura Ramos on Jul 24, 2024
Verified
The long-run average or peak period needs of operating departments would be the most suitable base for allocating:
A) the variable element of power costs.
B) the fixed element of power costs.
C) total power costs.
D) any spending variance associated with power costs.
Fixed Element
A cost that does not change in total with changes in the volume of activity, remaining constant regardless of changes in levels of output or sales.
Power Costs
The expenses associated with the electricity used by a business for its operations.
Operating Departments
Units or divisions within an organization that are directly involved in its primary revenue-generating activities.
- Discern between various cost allocation platforms and apprehend their employment in cost accounting practices.
- Identify the effects of peak-period demand on budgeting and cost allocations.
Verified Answer
Learning Objectives
- Discern between various cost allocation platforms and apprehend their employment in cost accounting practices.
- Identify the effects of peak-period demand on budgeting and cost allocations.
Related questions
Tabarez Corporation's Maintenance Department Provides Services to the Company's Two ...
For Performance Evaluation Purposes, the Fixed Costs of a Service ...
Fred Has Centralized the Purchasing and Recordkeeping Functions for His ...
Which of the Following Is a Cost Pool Used with ...
If Selling and Administrative Expenses Are Allocated to Different Products ...