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The best cost center to allocate Repair costs is:

A- direct labor hours 

B- machine hours 

C- number of repairs 

D- Number of units 

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Question added by Ahmed kandil , Cost Controller , Battour Holding Cpompany
Date Posted: 2015/03/28
Sankar potty
by Sankar potty , CFO , Salem Mohsen Al Harty Estt.

Ans--  A  &  B  or a combination of both, depends upon the  intensity and easiness in booking the usage to the units repaired.  Normally this becomes a  standard unit of  cost.

Ahmer Zamir
by Ahmer Zamir , Consultant , Saleem Associates & Co

The correct option is C) The Number of Repairs

Mohammed Shahid Ullah
by Mohammed Shahid Ullah , Executive Director (Finance) , Coal Power Generation Company Bangladesh Limited

The best cost enter to allocate repair cost is to machine hours. Repairs mainly depend on machine hour.

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