A company incurs a total cost of $2 million for rent during 2015. If the company were to include $1.5 million of the rent in cost of goods sold expense (factory rent) and $0.5 million in administrative expense (head office rent), this would be described as presenting rent expense ____________ .

Group of answer choices

a. by allocation.

b. y function.

c. by nature.

d. incorrectly (such presentation would not be permitted under generally accepted accounting principles).