Chapter 12, Problem 5RQ

To determine

Introduction: The foundation upon which an organization allocates its administrative expenditures is referred to as an allocation base. The number of people employed, the numbers of machines hours required, the amount of energy utilized, the floor area in use, and the time it takes all contribute to the allocation base.

If the use of numbers of employees as the allocation base is right for A Hotel and Resorts and for which type of company it is not best to use.