Question

To what should the allocation base used to apply overhead be most strongly associated?

Answer 1

To the estimated overhead cost should the allocation base used to apply overhead be most strongly associated.

Cost, generally speaking, is the monetary value of goods and services purchased by producers and consumers. In a basic economic sense, the cost is a measure of the alternatives given up in choosing one good or activity over another. These basic costs are commonly called opportunity costs.

Cost is the monetary value that a business has had to spend to produce goods or services. Calculated as the amount of money a business spends to produce a specific unit of a product. Simply put, it is the money a business spends on labor, services, goods, etc.

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