Which of the Following Is Not a Reason to Justify

question 88

Multiple Choice

Which of the following is not a reason to justify the allocation of support services?

• A) Tax reporting requirements.
• B) Influencing behavior of employees.
• C) To trace costs to the activity that created the costs.
• D) Cost based contracts.

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Definitions:

Gross Margin Percentage

A financial metric used to assess a company's financial health by revealing the proportion of money left over from revenues after accounting for the cost of goods sold.

Net Profit Margin Percentage

A financial ratio that shows the percentage of net income derived from total revenue, emphasizing the profitability of a company after all expenses have been deducted.

Financing Activities

These activities generate cash inflows and outflows related to borrowing from and repaying principal to creditors and completing transactions with the company’s owners, such as selling or repurchasing shares of common stock and paying dividends.

Cash Inflow

Cash inflow is the movement of money into a business from various sources, including sales, investment income, and financing activities.