2017 · Q68
The cost of electric power should be apportioned over different departments according to
General Accounting Principles, Auditing and InsuranceCost and management accounting
- Ahorsepower of motors
- Bnumber of light points
- Chorsepower multiplied by machine hours
- Dmachine hours
Explanation
Electric power consumption depends on both the capacity of the motors and how long they run, so power cost is apportioned on horsepower multiplied by machine hours. Number of light points suits lighting cost, and machine hours alone ignores differences in motor load. Hence C.