If No Other Method of Dividing Net Income or Net

question 53

Multiple Choice

If no other method of dividing net income or net losses is specified in the partnership agreement,it is divided

• A) in relation to the partners' capital account balances.
• B) in relation to the amount of time each partner devotes to the business.
• C) in relation to the original investment by each partner.
• D) equally.

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Definitions:

Overhead Applied

The portion of estimated overhead cost allocated to each unit of production or activity based on the predetermined overhead rate.

Manufacturing Overhead

Factory-associated indirect expenses that arise during the manufacturing of a product.

Estimated Total

The projected summed amount or quantity determined through approximation or calculation at the outset of a project or for a specific period.

Unit Product Cost

The total cost associated with producing a single unit of a product, including direct materials, direct labor, and manufacturing overhead.