Social Security Payments Are

question 35

Multiple Choice

Social Security payments are

• A)included in GDP because they represent payments for work performed in the past.
• B)included in GDP because they represent potential consumption.
• C)excluded from GDP because they are not private pensions.
• D)excluded from GDP because they do not represent current government purchases of goods and services.

Understand the concepts and applications of service department cost allocations.

Differentiate between the step-down and direct methods of cost allocation.

Calculate total department costs after service department costs allocations using step-down method.

Calculate total department costs after service department costs allocations using the direct method.

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Definitions:

IASB

Stands for the International Accounting Standards Board, which is an independent, private-sector body that develops and approves International Financial Reporting Standards (IFRSs).

Gross Method

An accounting practice where purchases are recorded at their gross price without deducting any cash discounts at the time of purchase.

Perpetual Inventory System

An accounting technique that utilizes computerized point-of-sale systems and enterprise asset management software to immediately record inventory transactions upon sale or purchase.

Merchandise

Goods or products that are bought and sold in retail or wholesale in the business.