QUESTIONS Electricity charges are allocated on the basis.of: a. Number of light points b. Cost of machines c. Factory costs d. a and b e. b and c The method of apportionment suitable for allocating rent of building between cost centres is: a. Number of employees b. Machine hours c. Kilowatt per hour d. Floor space e. Machine cost Depreciation on machine is apportioned on the basis of: a. Machine hours b. Labour hours c. Machine cost d. a and c e. a and b Which of the following is not an assumption of cost-volume-profit (CVP)? a. It is possible to distinguish between fixed and variable costs b. The entity sells multiple products C. The entity maintains a constant sales mix d. CVP analysis applies to the relevant range only Profit is calculated on a variable costing basis e.