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SSC Financial and Cost Accounting P-1 QUESTION #6122
Question 1

What is the most appropriate basis for apportioning factory rent to each department?

  • Floor space occupied✔️
  • Number of employees
  • Production output
  • Value of machinery
Correct Answer Explanation

Option A (Floor space) is correct.

Rent is a cost of occupying space — floor space is the logical basis. Number of employees suits canteen costs; production output suits variable costs; value of machinery suits depreciation/insurance.