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QUESTION 5 Which of the following is not an inappropriate allocation base? Allocating cafeteria overhead based on number of e

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Answer #1

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  • Correct Answer = Option #1: Allocating cafetaria overhead based on number of employees.
  • The question asks for allocation base being ‘not inappropriate’.
    This means that we have to choose which allocation base is ‘appropriate’.
  • Employees hangout and use cafetaria space. Hence, allocating cafetaria overhead cost on basis of number of employees is CORRECT.
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