A police department wants to allocate the indirect cost of speed monitoring to the three toll roads around the city. An allocation basis that may notbe reasonable is:a. miles of toll road monitored.b. average number of cars patrolling per hour.c. amount of car traffic per section of toll road.d. cost to operate a patrol car.
A police department wants to allocate the indirect cost of speed monitoring to the three toll roads around the city. An allocation basis that may notbe reasonable is:a. miles of toll road monitored.b. average number of cars patrolling per hour.c. amount of car traffic per section of toll road.d. cost to operate a patrol car.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A police department wants to allocate the indirect cost of speed monitoring to the three toll roads around the city. An allocation basis that may not
be reasonable is:
a. miles of toll road monitored.
b. average number of cars patrolling per hour.
c. amount of car traffic per section of toll road.
d. cost to operate a patrol car.
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