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The best base to allocate machines maintenance is:

A- times of machine maintenance B- age of machine in production line C- production of each machine D- all answers are false

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Question added by Ahmed kandil , Cost Controller , Battour Holding Cpompany
Date Posted: 2015/05/13
Basil Joy
by Basil Joy , Accountant , Salam Studio And Stores

In terms of machine cost..(overhead costs) the no of hours the machine was used is in my opinion the best way to allocate machine maintenance costs.(ABC Costing).

Option B is also a good base to take to allocate maintenance costs.

 

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