Which of the Following Does NOT Fall Within the Implied

question 14

Multiple Choice

Which of the following does NOT fall within the implied authority of a partner to bind the firm?

• A)Purchasing goods usually used by the firm.
• B)Receiving payments and giving receipts.
• C)Inviting others to join the partnership.
• D)Employing suitable staff.

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Definitions:

Step-down Method

An approach to allocating service department costs to production departments based on a hierarchical sequence of services provided.

Administrative Department

A segment of a company responsible for managing the general operations and ensuring the smooth functioning of the business.

Custodial Department

A division within an organization responsible for maintenance, cleaning, and security services.

Step-down Method

A cost allocation method used in accounting where overhead costs are assigned to departments in a sequential order, often starting with the department that incurs the most overhead, then allocating costs down to other departments based on predetermined criteria.