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Which of the following cost and cost allocation bases have a strong cause and effect relationship?...

Which of the following cost and cost allocation bases have a strong cause and effect relationship?

a. administration costs and cubic feet

b. setup costs and square feet

c. machine depreciation and output units

d. machine maintenance and setup hours

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Answer #1
Machine depreciation and output units have a strong cause and effect relationship.
The wear and tear on machine is dependent on output units and thus establishes a strong cause and effect relationship.
Option C is correct
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