Question

Which of the following is an appropriate base to distribute the cost of building depreciation to responsibility centers? Total budgeted direct operating costs of the responsibility centers. Square feet occupied by the responsibility centers. Budgeted sales dollars of the responsibility centers. Budgeted net income of the responsibility centers. Number of employees in the responsibility centers.

Answer 1

Answer:

Square feet occupied by the responsibility centers are an appropriate base for the distribution of building depreciation cost to responsibility centers.

Explanation:

The costs of a business are circulated to different cost duty focuses. The costs identified with the devaluation of a structure are likewise dispersed to different obligation communities. For this reason, the devaluation costs will be conveyed based on pertinent and suitable elements.  

It very well may be seen that the square feet region involved by the duty communities is identified with the expense of devaluation of building. It is one of the parts of the idea identified with the structure. As needs be, the square feet involved by the obligation habitats will be the fitting reason for the concerned reason.