The Basis for Dividing Partnership Net Income or Net Loss

question 37

Multiple Choice

The basis for dividing partnership net income or net loss is referred to as any of the following except the

• A) income ratio.
• B) income and loss ratio.
• C) profit and loss ratio.
• D) income sharing ratio.

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Definitions:

Materials Handling

The movement, protection, storage, and control of materials and products throughout manufacturing, warehousing, distribution, consumption, and disposal.

Cost Per Unit

The calculation of the cost to produce or acquire a single unit of product, including direct materials, labor, and overhead.

Selling and Administrative Cost

Expenses related to the selling of products and the general administration of a business, not including production costs.

Activity Rate

A measurement used in activity-based costing to allocate costs to specific activities, typically expressed as a cost per activity unit.