Cost allocation base used by an operating manager is classified as

A. machine hours

B. flexible hours

C. variable hours

D. fixed hours

Answer: Option A

Solution(By Examveda Team)

Cost allocation base used by an operating manager is classified as machine hours. A machine-hour is a measurement used to apply factory overhead to manufactured goods. It is most applicable in machine-intensive environments where the amount of time spent in processing by a machine is the largest activity upon which overhead allocations can be based.