The Algebraic Method

question 12

Multiple Choice

The algebraic method

• A)considers all interrelationships of the departments and reflects these relationships in equations.
• B)does not consider interrelationships of the departments nor reflect these relationships in equations.
• C)is also referred to as the "benefits-provided" ranking method.
• D)is not a service department cost allocation method.

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Definitions:

Revenue Recognition Principle

A concept of accounting that states that revenues are recorded when earned, which is when the services have been performed or products have been delivered to customers.

Recorded

The action of entering financial transactions into the accounting records of a business.

Recorded

The process of documenting financial transactions in the books of accounts as evidence of the transactions.

Relate

To establish a connection or relationship between two or more things.